IMF rules out the possibility of a global financial crisis

On March 13, the Managing Director of the International Monetary Fund (IMF) Kristalina Georgiev said that unprecedented sanctions imposed by the West on Russia could push the country into default. However, this will not cause an accident financial crisis Global.

According to Georgieva, Western sanctions are having a heavy impact on the Russian economy and will plunge the country deeper into recession this year.

In addition, sanctions also limit Russia’s ability to access reserves and pay off debts, meaning Moscow’s default is not impossible.

However, IMF Director General Georgieva said that because the total money source of banks related to Russia is only about 120 billion USD, although it is not small, it is difficult to affect the global financial system.

Meanwhile, Russia’s Finance Ministry said Western sanctions had frozen about $300 billion of Russia’s $640 billion in gold and foreign exchange reserves.

However, Russian officials still insist that Russia will fulfill its national debt obligations and will make payments in rubles to creditors while waiting for the national reserves to be lifted.

Today (March 14), the Russian Ministry of Finance also approved a temporary procedure for payment of foreign currency debt.

The Russian government is expected to pay $117 million worth of bonds on March 16.

* Invite readers to watch programs broadcast by Vietnam Television on TV Online and VTVGo!