Romania is a less risky debtor compared to older EU members such as Spain, Italy or Hungary, but the country is still paying higher interest rates on its sovereign debt compared to the first half of 2011. This stems from a global ranking from British market researcher CMA, Mediafax reported April 19.
In its latest quarterly global sovereign credit risk report, CMA said Romania slid five notches to 21st in the top of the riskiest economies that could default on their debt in the next five years. Romania's cumulative default probability index decreased to 20% at the end of March, from 27% in December 2011, the report noted.
Cyprus leads the top ten most risky sovereign credit chart. The country replaced Greece as the world's economy most probable to enter default in the medium term, after the latter finally initiated a debt-restructuring program (which is perceived as a default). Portugal is the second most risky debtor worldwide, followed by Pakistan and Argentina, the report stated. (Source: bne/Balkans.com)