Strong growth prospects Moderate general government debt Narrowing external imbalances Continued structural weaknesses in public finances, reflected in low tax collection and government arrears Significant external debt and reliance on cross border interbank funding Limited administrative capacity evidenced by low absorption of EU funds and high perceived levels of corruption The ratings on Romania balance our view of the country's strong economic growth potential and moderate general government debt against its limited administrative capacity, relatively low prosperity and high, if declining, levels of external debt. We expect the Romanian economy will stage a modest recovery in 2011 and strengthen steadily thereafter. In our view, growth will be muted in the short term owing to continued fiscal adjustment and household deleveraging,
