IMF No Longer Sees Russia Debt Default as Improbable Event
- Nation has money but can’t use it due to sanctions: IMF MD
- Georgieva says IMF likely to cut global growth forecast on war
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The International Monetary Fund joined a growing chorus that’s warning of a risk that Russia will default on its debt obligations as the nation suffers a deep recession caused by sanctions in response to its invasion of Ukraine.
A Russian default is no longer “an improbable event,” IMF Managing Director Kristalina Georgieva told reporters Thursday. “It’s not that Russia doesn’t have money, Russia cannot use this money,” she said, adding that unprecedented sanctions against the nation will make it difficult for the country to convert its IMF reserve assets, known as special drawing rights, into currency.