Discusses the most common methods of payment, such as open account, letter of credit, cash in advance, documentary collections, factoring, etc. Includes credit-rating and collection agencies in this country. Includes primary credit or charge cards used in this country.
Last Published: 7/25/2019

The least risky for the American exporter and most widely accepted method of payment is by confirmed, irrevocable letter of credit.  This method, however, is not necessarily the most competitive for winning sales in Romania.  An L/C represents a credit obligation for the Romanian buyer, who may not be willing (or able) to borrow at a cost-effective rate.  Cash-against-documents or open-account terms entail more risk for the exporter but may be preferable for the buyer.  Each exporter has to weigh the element of risk in a transaction against the relationship with the buyer and degree of competition.
Commercial banks offering international trade services can describe the risks and merits of each payment method, but American exporters are well advised to establish payment policies for international sales based on their business strategy.  In addition to the due diligence tools discussed earlier, there are other forms of U.S. Government support for managing risks.  The U.S. Export-Import Bank (Ex-Im Bank) offers a program of export credit insurance to enable U.S. exporters to extend credit terms with protection against the risk of non-payment.
On May 10th, 2019, Fitch Ratings affirmed Romania's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB-' with a Stable Outlook.
Key Link: www.fitchratings.com/site/pr/10075089
On March 18th, 2019, Central European Financial Observer announced that Standard & Poor’s affirmed the outlook of Romania’s sovereign ratings as stable, according to an official release.  The agency affirmed the country’s ratings at BBB-/A-3 on March 4th, 2019, announcing that the outlook was under appeal.
Key link: https://financialobserver.eu/recent-news/sp-affirms-outlook-of-romanias-ratings-at-stable
On March 4th, 2019, Moody's announced completion of a periodic review of issuers including the Government of Romania.  The Baa3 rating of Romania is underpinned by Moody's assessment of the following: "Moderate (+)" economic strength, balancing strong economic growth and structural weaknesses that constrain the country's potential (public infrastructure); "Moderate" institutional strength, reflecting the risk of reform reversal, rising tensions with the European Union, and diminished fiscal credibility; "Moderate (+)" fiscal strength, balancing a still relatively low debt burden and deteriorating fiscal metrics with a widening of both the headline and the structural deficit; and "Moderate (-)" susceptibility to event risk, driven by the external vulnerability risk due to a widening current account deficit.
Key Link: https://www.moodys.com/research/Moodys-announces-completion-of-a-periodic-review-of-issuers-including--PR_394662

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.