Significant economic growth potential Moderate general government debt Narrowing external imbalances Continued structural weaknesses of public finances, reflected in low tax collection and government arrears Relatively weak external financial position Weak administrative capacity The ratings on Romania balance our view of the country's substantial economic growth potential and moderate general government debt against Romania's limited administrative capacity, relatively low prosperity and high, albeit declining, levels of external debt. In 2011, we expect the Romanian economy to emerge gradually from recession. In our view, growth will be muted in the short term owing to continued fiscal adjustment and household deleveraging, both of which will weigh on private consumption. Household borrowing in foreign currency stands at 65% of the loan book, and
