IMF: Russia could go bankrupt -

IMF: Russia could go bankrupt –

Kristalina Georgieva, director general of the International Monetary Fund, has warned that Russia may not be able to meet its foreign commitments due to sanctions imposed on it for invading Ukraine, but that situation will not cause a global financial crisis, Reuters reports. .

Georgieva said that the sanctions imposed by the United States and other states already have a “severe” impact on the Russian economy and will lead to a deep recession this year on CBS’s Face the Nation.

In his opinion, “War and sanctions also have significant negative effects on neighboring countries that depend on energy supplies from Russia and have already resulted in a wave of refugees comparable to that of World War II,” said the head of the IMF. Reuters, quoted by Agerpres.

Russia now calls its actions in Ukraine a “special operation.”

IMF: Russia could go bankrupt

In the socio-economic context, “sanctions also limit Russia’s ability to access its resources and pay its debts, which means that a default will no longer be seen as” unlikely, “the official said. IMF.

Universally, when asked if going into bankruptcy could trigger a global financial crisis, Georgieva replied, “Not yet.”

In his explanations, “the total exposure of banks in Russia amounts to about 120 billion dollars, an amount that, although not insignificant,” is not systemically relevant, “said the head of the Fund.

In other news, asked if Russia could gain access to the $ 1.4 billion emergency funding approved by the IMF last week for Ukraine if Moscow wins the war and installs a new government, Georgieva said the funds are in a special account to which only the Ukrainian Executive has access.

In addition, the IMF official stressed that he was referring to “an internationally recognized Ukrainian government.”

On the other hand, last week, Georgieva said that the IMF will worsen its previous estimate of a 4.4% advance in the world economy in 2022 due to the war, but assured that the general trajectory remains positive.

In conclusion, “Growth remains robust in countries such as the United States, where the COVID-19 pandemic is recovering rapidly. The most significant impact will be on rising commodity prices and rising inflation, which could potentially lead to famine and food insecurity in parts of Africa, “warned the International Monetary Fund.