Romania faces soaring borrowing costs and possible gold sales if downgraded to junk

Economists warn that a downgrade of Romania’s sovereign credit rating to the "junk" category would sharply raise borrowing costs. Journalist Val Vâlcu cautioned that interest rates could “explode” if the rating falls, stressing the fiscal strain on the government and households.

S&P Global Ratings currently rates Romania at BBB‑/A‑3 with a negative outlook, reflecting the ongoing political crisis. Economist Adrian Negrescu highlighted that a junk rating could force the state to tap its gold reserves, selling part of the 103.6 tonnes of gold—about 59 % of which is held in custody at the Bank of England in London—to raise urgent liquidity.

Both analysts note that such a downgrade would place Romania in a “non‑investment‑grade” zone, making external financing more expensive and potentially prompting legal actions over higher loan costs.