Romania's GDP will contract by only 4% this year (+/-0.2pp), S&P will maintain the sovereign debt rating in the investment-grade area, and the country will need no agreement with the International Monetary Fund, finance minister Florin Citu said in a press conference before the Parliament meeting on budgetary and economic matters.

He argued that two rating agencies (Moody's, Fitch) maintained Romania's sovereign rating above the junk region "only because there is a reliable Government in charge here."

Due to the investors' confidence [in the Government], Romania also managed to finance the budget deficit at costs lower by almost 0.2 percentage points.

"I exclude the option of an agreement with the International Monetary Fund. We have shown this year that financing a large deficit is possible without the need for international financial institutions by earning the market's trust. From my point of view, I tell you there are no such discussions," finance minister Citu said, quoted by News.ro.

As for the financial planning for 2021, Citu said that next year's budget deficit could be one percentage point lower than this year's 8.6% of GDP target.

The revision of the 2020 budget, which will not change the 8.6%-of-GDP deficit target, will be published this week, he added.

(Photo: Gov.ro)

andrei@romania-insider.com