Romania Doesn’t Risk Default – Central Bank Head

IMF president Dominique Strauss Kahn Wednesday said in a television interview that a series of „vulnerable” European economies, such as Greece, Ireland, Latvia, Hungary and Romania, need to implement harsh measures to bring their budget deficits in line.

However, no European state is risking default, Strauss Kahn said, adding that the countries which are vulnerable or poor are always the ones that suffer the most.

„Neither the IMF nor its chief is paying Romania’s debt (…). As governor of the central bank, I can tell you with absolute certainty that there is no risk Romania suspend its external payments,” Isarescu said.

He added Romanians lack economic and financial education when promoting this type of news.

Strauss Kahn’s statement was not about some European countries being in danger of collapsing, but about their need to make budgetary adjustments to prevent possible situations when they could face default, Isarescu said.

„Romania was one of the countries Strauss Kahn referred to, but it was at the bottom of the list,” the central bank’s chief mentioned.