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February 2, 2023

Romania, the most indebted state to IMF, MEP Cretu warns

Social-Democrat Party (PSD) MEP Corina Cretu, vice-president of the EP’s Development Commission, interpellated the European Commission yesterday on the risk of growing indebtment to the IMF of some EU member states, as Romania became the most indebted state to the Fund. “Romania has, at the moment, the highest debt to the International Monetary Fund, while other EU member states, such as Hungary and Latvia, are in the top positions of the same ranking, made according to the amounts they owe,” the Romanian MEP underlined, quoted by Mediafax. “To prevent the EU states which solicited IMF aid from defaulting, the Fund modified its traditionally restrictive policy, and a large section from each instalment of the loan is allotted to financing the budget deficit, rather than supporting the currency reserve, which stalls the solving of fiscal problems that Eastern European countries are confronted with,” Cretu warned. The MEP initiated last week an EP dialogue group with representatives of international financial institutions. Cretu also urged the EC to acknowledge the risks of some EU member states’ indebtedness to the IMF, as ever more economists warn we are approaching a global crisis of public debt.

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