Moody's: Romania will not recover from the recession until 2010, but long term perspectives are positive

Romania is currently undergoing a deep recession, of which it will not be able to recover until 2010, but its long term perspectives are positive, a Moody’s report reads, quoted by Romanian news agency NewsIn. The financial evaluation agency says that, on a short term, Romania’s economy is unlikely regain its high growth rates registered before the crisis.

Romania was caught in the vortex of the global financial crisis at a time when its financial situation was unstable, Moody’s analyst Kenneth Orchard declared. He added that the political risk is not that big in Romania. However, Romania’s economic activity and the quality of actives in the banking system are at risk.

The report reads that the IMF agreement could not stop the serious downfall of the production or the state’s debt. Nonetheless, these funds managed to stabilize the economy and diminished the pressure to refinance debts.

The documents reads that Romania’s ratings are currently sustained through the IMF and EU loans and by the willingness of foreign banks to maintain their support to their Romanian branches.