Economics

IMF Head Says Russian Default No Longer an ‘Improbable Event’

  • Georgieva sees no immediate risk of broader financial crisis
  • Fund expects to downgrade 2022 growth outlook, she says
WATCH: War, sanctions, perplexing government decrees and disrupted payment chains are leaving investors in Russian bonds scratching their heads.Source: Bloomberg
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A Russian sovereign default is no longer improbable, though it’s unlikely to trigger a global financial crisis, International Monetary Fund Managing Director Kristalina Georgieva said.

With Russia and Russian banks under sanctions by the U.S. and its allies after the full-scale invasion of Ukraine, Russia’s credit rating has faced downgrades. Fitch Ratings said last week that a bond default is “imminent” as a result of measures imposed since the war in Ukraine began on Feb. 24.