Romania: Staff Report for the 2012 Article IV Consultation, Sixth Review Under the Stand-By Arrangement, and Requests for Waiver of Nonobservance of Performance Criterion and Modification of Performance Criteria

October 23, 2012

Preview Citation

Format: Chicago

Romania: Staff Report for the 2012 Article IV Consultation, Sixth Review Under the Stand-By Arrangement, and Requests for Waiver of Nonobservance of Performance Criterion and Modification of Performance Criteria, (USA: International Monetary Fund, 2012) accessed December 24, 2024

Summary

Significant progress has been made in macroeconomic stabilization under two successive SBAs but the economic recovery remains fragile. Growth is expected to remain subdued in the near term and to only gradually recover over the medium term, with risks to the outlook mostly on the downside. With strong trade and financial sector linkages, Romania is exposed to the euro area crisis. Fiscal and external reserves provide a buffer and the banking sector remains well-capitalized. At the same time, the political situation has become more unsettling with three governments in 2012, uneasy cohabitation between the President and the governing coalition that has sought to remove him, and parliamentary elections to be held in the fall. The political uncertainty has contributed to accelerated exchange rate depreciation and higher financing costs, and has dented confidence.

Subject: Arrears, Banking, External debt, Fiscal policy, Fiscal stance, Inflation, Prices, Public debt

Keywords: Amount of SDR, Arrears, Central Asia, Core inflation, CR, EU fund disbursement, Europe, Fiscal stance, Global, Inflation, ISCR, Launch tender, Program implementation, Rate, Transportation sector, Western Europe

Publication Details

Pages:

117
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2012/290
Stock No:

1ROUEA2012005
ISBN:

9781475540765
ISSN:

1934-7685

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