Kristalina Georgieva explained what influences such chances.
Managing Director of the International Monetary Fund Kristalina Georgieva said yesterday that default in Russia can no longer be considered an incredible event.
According to the expert, who spoke on CNBC, the country is experiencing a deep recession, to which it was pushed by tough sanctions.
She did not consider it necessary to make forecasts in such a situation, due to the fact that the specific chance of default directly depends on the special operation in Ukraine.
Secondly, the duration of the sanctions themselves will affect it. It is also unclear whether the country will be able to pay its debts.
“As for default, this scenario no longer seems improbable,” Georgieva said.
She believes that not only Russia, but the whole world will be under the consequences of the events in Ukraine and in the Russian Federation, which is already noticeable now.
These include rising prices for raw materials, energy resources and food.
Further serious inflation increases will affect global incomes, consumer demand and the global economy as a whole.
As Topnews wrote earlier, after Russia announced the special operation on February 24, international rating agencies significantly lowered the ratings of the Russian Federation.
The Ministry of Finance believes that in case of freezing of gold and foreign exchange reserves of Russia, the West faces default on obligations to the country.