Coface improves Romania’s country risk for the first time after 2009

Credit insurer Coface has improved Romania’s country risk from B to A4, for the first time after 2009. The positive evolution of the local economy is exclusively generated by consumption, the company warned. This could lead to future imbalances, said Eugen Anicescu, Coface Romania country manager. “Growth, under the impetus of internal demand, should increase again in 2016 to reach a high level (3.9% - e.n.), above its potential. Household consumption (70% of GDP), which has already benefited from doubled family allowances in mid-2015, will be boosted by rising wages induced by the strong employment and falling unemployment, increased public sector pay and the reduction in standard VAT from 24 to 20% as of January,” reads a Coface report, cited by local Agerpres. Romania’s last rating update took place in 2009, when its country risk dropped from A4 to B due to the economic crisis. This year Coface has improved the rating of four countries in Central and Eastern Europe (CEE), namely Romania, Slovenia, Lithuania, and Latvia. Coface is active in credit insurance, debt collection and factoring. editor@romania-insider.com