President Băsescu publicly launched the topic of changing theprime minister two months ago, but in the meantime his position haschanged. However, markets have taken in this uncertainty andhesitate to lend long-term until the situation is clarified.
Romania keeps delaying the time when it goes to internationalcapital markets, where it could benefit from the unhoped fordecline of Romania's CDS (cost of insuring the country's debtagainst default) because investors traditionally interested inRomanian government bonds are said to have been worried until notlong ago about whether Romania's prime minister would stay inoffice or not, and have been waiting for this matter that can be amajor source of political turmoil, to be clarified, say bankingsources.
"Paradoxically, several elements have emerged that would havenormally justified the use of this window of opportunity, which canclose at any point: from the sealing of a new arrangement with theIMF and the EU, to the exceptional signals regarding exports andthe exit from recession, which all translated into the significantdecline of CDS (credit default swaps). The technical mechanism forforeign funding is functional, it has been said repeatedly that wecould use a systematic presence on the market, but unfortunatelyRomania cannot sell this story, which is finally becoming moreconvincing, because of the endless talks on who will be primeminister," say the quoted sources.
About two months ago president Traian Băsescu launched the topicof prime-minister Emil Boc being potentially replaced by anindependent/technocrat. There have been numerous politicaldiscussions, lists of potential candidates have been drawn up, withZF even proposing a list of potential candidates from among thebusiness community. But, in what has become typical politicalbehaviour for the Romanian president, on Sunday he told aconference that he continues to endorse his "partner" Emil Boc.
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