Romania: Ex Post Evaluation of Exceptional Access Under the 2009 Stand-By Arrangement
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Summary:
This paper discusses ex-post evaluation of Romania’s exceptional access under the 2009 Stand-By Arrangement. Concerns about Romania’s external and fiscal sustainability have triggered significant increase in external borrowing costs as sovereign yields jumped to 9 percent. Banks also came under increasing pressure, with liquidity drying up from the interbank market. Rollover risks also increased as the maturity structure gradually deteriorated, and reserves coverage of shorter-term external debt declined. The large and front-loaded financing along with upfront fiscal actions has helped quickly to restore market confidence, with a successful return to private financial markets during the program period.
Series:
Country Report No. 2012/064
Subject:
Arrears Banking External debt Financial crises Fiscal policy Fiscal sustainability Public debt
Frequency:
Quarterly
English
Publication Date:
March 27, 2012
ISBN/ISSN:
9781475502619/1934-7685
Stock No:
1ROUEA2012002
Pages:
32
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