IMF calms down rating agencies

Rating agencies don’t always have first-hand information, according to Horst Koehler, IMF general director. He referred to negative opinions on Romania, voiced by rating agencies, which are still concerned about potential default.

“By approving the stand-by agreement, the IMF will send a political signal to rating agencies,” he maintained.

The IMF has launched an extremely positive message concerning Romania, praising substantial progress in economic stabilisation. The Fund also stated that there is no sign that might indicate Romania’s entering default, thus answering concern expressed by rating agencies.

“Considering progress achieved by Romania, and the right direction it is heading, I think that the IMF will adopt a favourable stance regarding the approval of the stand-by agreement,” Horst Koehler said during his meeting with Romanian Prime Minister Mugur Isarescu, in Washington. “In our opinion, the pledge made by Romanian authorities to enforce the right policy, deserves IMF support,” Koehler maintained.

Michael Depler, executive manager of the Fund, was even more determined, stating there is no real sign concerning Romania entering default.

According to Depler, the economic situation needed to be stabilised last year, considering external and banking sector problems and this is precisely why this aspect has been emphasised. “This year we will focus on structural needs, because financial stability has been achieved,” he said.