Russia default would have ‘limited’ global impact: IMF official

WASHINGTON: If Russia cannot pay its foreign loans, the ramifications for the global financial system are likely to be “minimal,” according to a top official at the International Monetary Fund.

In punishment for Russia’s invasion of Ukraine, the US and its allies put harsh financial sanctions on the country, but Moscow has so far paid its debts.

Nonetheless, there are questions about its capacity to service its loans, particularly after a US exception that authorises the transactions expires on May 25.

“I believe the immediate impact on the rest of the globe would be fairly minimal if there was a default,” said Gita Gopinath, the Washington-based crisis lender’s number-two official.

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