ERIC FINE: Romania has been a steady and somewhat boring story in the last seven months. What's the latest there?
NATALIA GURUSHINA: I would say that Romania is getting more entertaining and not necessarily in a good sense.
FINE: When we say "boring" in the bond world that can be a very good thing.
GURUSHINA: I don't think it's necessarily a good thing in this particular case. The statements and signals that I'm getting from the central bank are becoming more contradictory. It's difficult to see exactly what the central bank is trying to do with regard to the exchange rate and liquidity management. There is also a lack of coherence on the part of the president and the government with regard to the IMF deal. Even though the country treats this deal as precautionary, it definitely contributes to positive market sentiment for the country. My outlook on Romania did not necessarily change for the negative but certain red flags were raised during my trip.
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