Russia’s default on its foreign debt is likely to have “limited” consequences for the global financial system, a senior IMF official said today, according to AFP.
“If there was a default, I think the immediate impact on the rest of the world would be quite limited, because the numbers we are looking at are relatively small globally,” said Gita Gopinath, the IMF’s first deputy chief executive.
“It’s not a systemic risk to the global economy,” although some banks have “greater exposure,” Gopinath said in an interview with Foreign Policy magazine.
Following Russia’s invasion of Ukraine, the United States and other allies have imposed harsh economic sanctions on Russia, raising concerns about Russia’s ability to repay its debt.
While Russia has so far been able to service its loans, concerns for the future remain.
Source: Capital
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