Romania’s leu gained over 1% against the euro Thursday, a “massive move” from the local currency, the bank noted. Additionally, the Finance Ministry’s bond auctions drew strong demand from lenders, which led to a break of the uptrend in yields seen since May.
“While the near-term picture has turned rosy for the leu and Romania’s domestic debt, the outlook for the currency over the 2013 remains complicated,” ING said.
The bank estimates the positive evolution on the financial markets would make it more difficult for President Traian Basescu to ignore the request of the ruling coalition to reappoint Prime Minister Victor Ponta.
“On a different note, positive markets might make the government less open to comply with difficult reforms requested by the IMF,” the report showed.