Some members of the euro zone default risk has been exaggerated - IMF official

IMF officials said the default risk is exaggerated

* That the crisis does not create a domino effect of Ireland

Reuters, London, November 19 - --- International Monetary Fund (IMF) Fiscal Affairs Department director Carlos Cottarelli told Reuters on Friday, as a liability in the eurozone members trapped in the default risk has been exaggerated, as worries about the outside world mitigation, Ireland, Portugal and Spain, sovereign bond spreads will decline.

"The market overreacted, these European countries to withstand the pressure of debt default risk has been exaggerated." Carlos Cottarelli said.

When asked about Ireland, Portugal and Spain sovereign bond spreads over comparable government bonds will narrow, he said, "Of course ... I think that would narrow, but it will take time. Adjustment may be required after the start of 18 ... months, the situation can calm down. "

Irish 10-year bond spreads over German bonds 559 basis points on Friday 1115GMT Times, day beating down about 6 points, Earlier this month, hit a high of nearly 680 basis points.

Spain and Portugal, 10-year government bonds rose slightly spread plate, but still held in relatively low levels.

Cottarelli that the Irish need not worry about the debt crisis affect other vulnerable economies in the euro area. Some analysts believe that a similar deal with Portugal and Ireland impose the assistance measures to appease the market.

"I think the domino effect does not appear, I see only the financial problems of individual countries." Cottarelli said. (End)

- Compile Su Yang Yun; revision Tao



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