Acting Finance Minister Tanczos Barna said Friday that “rating agencies and markets consider he current political situation as a significant risk and a negative factor.”
He said Romania faces a choice between the “perspective of stabilization and recovery or an immediate worsening of the situation,” at the ballot box on May 18.
“We see signs of improvement in market conditions: the leu exchange rate has stabilized and long-term financing costs on the domestic market have started to decrease,” he said n Facebook on Friday evening.
He said that was proof that the state institutions are functioning and the central bank has the tools to maintain a balance on the exchange rate. Romania’s Prime Minister Marcel Ciolacu resigned this week in the fallout after the government candidate failed to make the runoff, meaning Barna is now acting finance minister.
“We must remain balanced and reserved. Rating agencies and markets assess the current political situation as a significant risk and a downside. The political risk generated by the election result can affect economic indicators. We need in the shortest possible time the formation of a responsible government and immediate reforms to restore the macroeconomic balance,” the minister also said.
On May 18, “we choose between the perspective of stabilization and recovery or an immediate worsening of the situation,” Barna said. “Only a president with European values can guarantee us a stable democratic path and can prevent a period of uncertainties that would profoundly affect the country’s development.”
His party which represents the 1.2 million ethnic Hungarians in Romania has officially announced its support for centrist Bucharest Mayor Nicusor Dan in the second round of the presidential elections.
Romania’s national currency the leu tanked after the first round of the presidential elections, falling to a historic low of 5.12 to one euro, down from 4.97 before the election.
