Romania has no reason to halt its external payments, said Mugur Isarescu (in picture), the Romanian Central Bank Governor, in response to the recent statement by International Monetary Fund head Dominique Strauss-Kahn. The IMF official recently said Romania, along with other countries, could face insolvency.

“The news was so credible, that the RON started to appreciate and Romania's credit default swaps are better than Spain's, not to mention Ireland's and Portugal's,” said Isarescu.  “Romania's payments are not made by the IMF, nor by its general manager, are made by the Romanian Government and by the Central Bank. As a Central bank Governor, I can re-state that there is no danger for Romania not paying its external debt,” said Mugur Isarescu.

The IMF head meant that there are countries where, if budget expenses are not cut, there would be a risk of reaching insolvency, Isarescu explained, saying Romania was at the bottom of the list mentioned by the IMF official.

editor@romania-insider.com