Moody's warns that Romania faces obstacles to meeting IMF commitments

Ratings agency Moody's will be keeping an eye on Romania's new government and the country's future ratings will depend on Romanian authorities successfully implementing policies. Romania could face both economic and political obstacles when attempting to meet the commitments made to the EU/International Monetary Fund and World Bank under the current joint deal, according to Moody's. “The first of these obstacles is the economic downturn; fiscal consolidation is complicated by slow government revenues, while spending cuts are difficult to manage. Then the political process in Romania can often be contentious, so even a parliamentary majority coalition government might face opposition in implementing its plans,” Moody's analyst Atsi Seth told local news agency Mediafax. Romaina's exchange rate will also be affected by any political instability, according to the ratings agency. Moody's assigns a Baa3 rating with negative outlook to Romania. editor@romania-insider.com