“Romania registers solid economic results: a GDP growth of 4.3% in the first quarter; a balanced budget execution in the first five months; the public debt is one of the lowest in the EU; the private debt and foreign currency lending registered a sharp downward trend. All these elements provide additional comfort and confidence in a low impact over the Romanian economy. Moreover, a potential negative impact on the economic growth in the European Union can be compensated on a local level by the increasing demand registered by Romania,” the Finance Ministry said in a statement.
Romanian officials said the state holds substantial foreign currency reserves which could be used to reduce the risked triggered by the increase of financing costs, offering the flexibility of resizing the volume of state bond issued in the upcoming period, until the markets get stabilized.
According to the Finance Ministry, the national, regional and international financial markets face volatility on the short term, while, on the medium term, the impact on the evolution of the economic indicators is expected to be moderate.
Thus, authorities should adopt prudent fiscal-budget policies and show higher responsibility in promoting measures that could affect budget targets.
Britain has voted to leave the European Union, with the Leave campaign securing around 51.8% of the vote. While England voted overwhelmingly for Brexit, Scotland and Northern Ireland backed Remain.