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December 5, 2022

Romania, no danger of defaulting on its payments, BNR counselor says

Following a report of the financial rating agency Moody’s, Adrian Vasilescu, counselor to the governor of the Central Bank (BNR), says that, at least for now, there is no reason for concern regarding the risk of Romania defaulting on its payments. “Even though this is not nice, I say that Moody’s also dreams sometimes…” Vasilescu said. “These scoring agencies, because they are not rating agencies anymore, they are scoring agencies that made mistakes in all their forecasts through the years… Regardless of how one might calculate, no matter how ill-intended the intervention might be, nobody can speak about Romania defaulting on its payments, as the cumulated debt of the state – foreign and local – is under 36 pc,” the counselor explained. Vasilescu also referred to the debt of the state, which does not amount to EUR 100 bln, as alleged. “This is Romania’s debt, which amounts to EUR 96 bln, not EUR 100 bln, but it is the debt of Romania, meaning the debt of Petrom, the debt of Mr. Pascariu’s bank, of other private debts. The debt of the Romanian state is just EUR 20 bln. As long as the debt of the state only reaches EUR 20 bln and the Central Bank has foreign currency deposits in excess of EUR 30 bln, where do you see the danger?” Vasilescu wondered.

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