Fitch Bank Systemic Risk Assessment On Romania Blind To Country’s Realities – Bker

"As always, there are agencies that draw conclusion easily, without knowing Romanian realities. Romania stands at a different level than that where Fitch places it. This is more of an estimate driven by collateral effects of turmoil in international markets," Ghetea said Tuesday on the sidelines of a seminar.

Fitch Ratings on Monday in its Bank Systemic Risk report placed Romania in the highest macro prudential risk category (MPI 3), due to accelerated lending growth and the rise in the domestic currency in the first half of last year.

"Romania has opportunities for development, it has proven that several times. Romanian authorities, and by that I mean the government and the central bank, are capable of reining in inflation and keep a tight grip on macroeconomic indicators, and that is apparent in recent and older evolutions, when Romania managed to show performance despite pessimistic views,” Ghetea added.

“Romania had one of the highest rates of real credit growth in emerging Europe last year and it shows no sign of slowing,” Fitch said in its report Monday.

The volatility of the exchange rate constitutes a risk for the stability of the Romanian economic and financial system, especially since 55% of the lending is in foreign currency, analysts said.

Fitch analysts warned Romania might fall into a higher prudential risk category ever since September last year.