Head of the IMF admitted the possibility of default in Russia

According to IMF Managing Director Kristalina Georgieva, a default may soon occur in Russia.  The reason for this may be the sanctions imposed on the country against the backdrop of events in Ukraine.  However, Georgieva stressed out that she had no intention of speculating on this topic.

Earlier, the International Monetary Fund approved the provision of $1.4 billion to Ukraine. The money is supposed to be used to support the country's government, including in terms of fulfilling social obligations. Among them are the payment of pensions and salaries, reports CNBC.

According to Georgieva, due to the situation that has arisen, the IMF will lower growth forecasts, but still expects that the dynamics will be positive.

At the same time, the ongoing nature of the situation around Russia and Ukraine, according to the head of the IMF, is the main factor in the ongoing uncertainty. As a side effect of the current situation, Georgieva named the increase in commodity prices, which in turn could hinder further growth and create difficulties for the global economy.

The head of the IMF noted that Russia will definitely enter a recession, but neighboring countries in Europe and Asia may suffer as well. Speaking about the possibility of a default in the country, Georgieva noted that this scenario no longer seems unbelievable.