Commerzbank: Delaying privatizations could affect RON

Failure to meet the deadlines included in the privatization programme agreed with the IMF because disputes between the government and the Presidency leave too little time for governing could affect the exchange rate, IMF support being essential for the RON, Commerzbank analysts believe, Mediafax informs. “Prime Minister Victor Ponta announced that the government did not manage to stick to the privatization timetable imposed by the IMF. Ponta blamed the political dispute with President Traian Basescu. Debates on how the government should better defend itself from political attacks consume so much time that preparations for selling the shares of state-owned companies have been delayed. These are not good news for the RON,” Commerzbank analyst Thu Lan Nguyen writes in a brief report. The Commerzbank analyst refers to the statements that Premier Victor Ponta made last week concerning privatizations and the disputes with President Traian Basescu. The RON continued to slightly appreciate in the first part of the trading day on Tuesday, in line with regional trends, so that the reference exchange rate that the National Bank of Romania (BNR) announced dropped slightly, from RON 4.4654/EUR on Monday to RON 4.4652/EUR. The exchange rate thus remains close to the historic high of RON 4.4662/EUR reached on May 24. The government took the commitment before the IMF and the EC to sell, this year and in 2013, the minority or majority share packages of state-owned companies.

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