TokyoTokyo Mon - Fri 10:00-18:00 +81 (368) 662-975
info@mountequitygroup.com

‘No systemic risk to global economy’: IMF on Russia default amid Ukraine war | World News

Mount Equity Group Tokyo Japan > News > Markets > ‘No systemic risk to global economy’: IMF on Russia default amid Ukraine war | World News

The consequences for the global financial system if Russia cannot pay its foreign debts are likely to be “limited,” a senior official at the International Monetary Fund said Tuesday.

The United States and its allies have imposed tough financial sanctions on Russia in retaliation for its invasion of Ukraine, but Moscow so far has made debt payments.

Still, concerns remain about its ability to continue to service its loans — especially after the May 25 expiration of a US exemption that allows the transactions.

“If there were a default, I think the direct effect on the rest of the world would be quite limited, because the numbers that we’re looking at are relatively small from a global perspective,” said Gita Gopinath, the number-two official at the Washington-based crisis lender.

“It is not a systemic risk to the global economy,” although some banks have “greater exposure,” she said in a discussion with Foreign Policy magazine.

The…

Read more…