Russian default no longer 'improbable', but no trigger for global financial crisis: IMF

Russian default no longer 'improbable', but no trigger for global financial crisis: IMF
The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, US, Sept 4, 2018.
PHOTO: Reuters

WASHINGTON - Russia may default on its debts in the wake of unprecedented sanctions over its invasion of Ukraine, but that would not trigger a global financial crisis, International Monetary Fund Managing Director Kristalina Georgieva said on Sunday (March 13).

Georgieva told CBS's "Face the Nation" program that sanctions imposed by the US and other democracies were already having a "severe" impact on the Russian economy and would trigger a deep recession there this year.

The war and the sanctions would also have significant spillover effects on neighbouring countries that depended on Russian energy supplies, and had already resulted in a wave of refugees compared to that seen during World War Two, she said.

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

The sanctions were also limiting Russia's ability to access its resources and service its debts, which meant a default was no longer viewed as "improbable," Georgieva said.

Asked if such a default could trigger a financial crisis around the world, she said, "For now, no."

The total exposure of banks to Russia amounted to around $120 billion (S$164 billion), an amount that while not insignificant, was "not systemically relevant," she said.

IMF Managing Director Kristalina Georgieva attends the UN Climate Change Conference (COP26) in Glasgow, Scotland, Britain, on Nov 3, 2021.
PHOTO: Reuters

Asked if Russia could access the $1.4 billion in emergency IMF funding approved for Ukraine last week if Moscow won the war and installed a new government, Georgieva said the funds were in a special account accessible only by the Ukrainian government.

An IMF official said that referred to the "internationally recognized government of Ukraine."

The IMF last year blocked access to Afghanistan's funds by the Taliban after they seized control of the government, citing lack of clarity over recognition of the Taliban rulers within the international community.

Georgieva last week said the IMF would downgrade its previous forecast for 4.4 per cent global economic growth in 2022 as a result of the war, but said the overall trajectory remained positive.

Growth remained robust in countries like the United States that had been fast to recover from Covid-19 pandemic, she told CBS.

The impact would be most severe in terms of driving up commodity prices and inflation, potentially leading to hunger and food insecurity in parts of Africa, she said.

ALSO READ: China faces consequences if it helps Russia evade sanctions, US says

homepage

trending

trending
    Italian man allegedly tricked Singaporean woman into sex work in Dubai, on trial for human trafficking
    ICA foils attempts to smuggle over 850 vape products via checkpoints in last 5 days
    6 injured in chain collision between 5 trucks and lorries on TPE
    10.4ha of forest in Woodlands to be cleared from 2026 for industrial, mixed-use developments
    Malaysian PM Anwar orders probe into fighter jet crash at Kuantan airport
    'This is all for my child's future': Why an SIA flight attendant left the skies for a hawker stall
    Thai actress Orm Kornnaphat cries as chaos ensues at China fansign, organiser slammed for allegedly overselling benefits
    3 taken to hospitals, 50 evacuated following Toa Payoh fire
    Jail for man who committed incest with older daughter, took videos of younger child showering
    Woman in China buys lottery while taking shelter from rain, wins over $170k
    Bangkok's Michelin-starred Jay Fai fined after YouTuber's complaint about overcharging for dish
    Woman seeking man who helped to save 4-year-old son from drowning in hotel pool

Singapore

Singapore
    • Woman trapped between train doors: Judge rules SBS Transit '100% responsible'
    • 'I saw the driver waving': SMRT bus captain who fought car fire near KKH says he couldn't ignore call for help
    • $218 release fee: Car park operator at Woodlands VEP centre criticised for clamping cars parked illegally
    • Nearly 80% of visitors to Johor in 2025 were from Singapore, says Malaysian official
    • 'They're just like my own': This couple shares why they decided to foster a child with special needs
    • Alert from courier firm helps HSA uncover drugs, e-vaporisers with etomidate in raids
    • Who's sitting where: Singapore Parliament releases seating arrangements
    • More Singaporeans find religion has 'considerable influence' in their lives: IPS study
    • MOE reveals timeline of Sengkang Green Primary bullying saga; pupil who sent death threats caned for subsequent incident
    • 12th world record for Singaporean powerlifter Farhanna Farid at World Games

Entertainment

Entertainment
    • 'Dreams don't expire': Desmond Tan buys first landed home, marks 39th birthday
    • 'I almost became a widow': Ada Choi discusses husband suffering heart attack in Singapore
    • Jack Neo uses AI to create SG60 song and music video that includes Lee Kuan Yew
    • Health alert: Jet Li undergoes surgery, Jackson Wang cancels fan-sign after getting food poisoning
    • Lil Nas X reportedly arrested for assaulting police officer
    • 13 unreleased songs by The Beatles to be in new compilation
    • Morgan Wallen reportedly not participating in 2026 Grammys

Lifestyle

Lifestyle
    • McDonald's teases BTS TinyTan Happy Meal, here's what we know
    • Indie darling The Projector announces immediate closure
    • 'Skibidi', 'delulu' and other social media words now found in Cambridge dictionary
    • From froyo to acai: Australian dessert chain Yo-Chi launches first international outlet in Singapore
    • The 'bridge to heaven': Things to do in Amanohashidate, Japan
    • I banned screens at the table for 2 weeks, here's what actually changed
    • Feeling awful after a great trip? How to solve it without booking another escape (for now)
    • Machu Picchu VR experience coming to Singapore in September, voiced by Terry Crews
    • Free breakfast for P6 pupils at Cheers, FairPrice Xpress outlets in September
    • From island-themed installations to festival villages: What to expect at Singapore Night Festival 2025

Digicult

Digicult
    • Black Myth: Wukong to get sequel featuring ghost-hunting deity Zhong Kui
    • Google Pixel Watch 4 and Pixel Buds 2a: Built to last longer with replaceable batteries
    • Singaporean Robert Sim receives one of Wikipedia's highest honours for his work on online platform
    • Tabletop, card games convention TableCon Quest 2025 triples in size as Bushiroad lands in Singapore
    • NDR2025: Govt to study new laws to protect kids from harmful, toxic content online
    • Apple Maps brings 3D landmarks and road-level realism to Singapore
    • The best AI tutor for O-level subjects: ChatGPT, Gemini or The Wise Otter?
    • Vivo X Fold5: A foldable contender with a few class-leading surprises
    • Here's everything in GPT-5 that's new and different than OpenAI's previous AI models
    • Australia regulator says YouTube, others 'turning a blind eye' to child abuse material

Money

Money
    • 5 unique ways you can use your SG60/CDC vouchers
    • Singapore indie cinema The Projector owes over $1.2m to creditors
    • Global markets face shaky week ahead as US pressure mounts on Ukraine
    • 6 best cashback credit cards in Singapore (August 2025)
    • Best bank offers in Singapore (August 2025): Limited-edition Stitch charms, 50% off flights and more
    • 9 best personal loans in Singapore with lowest interest rates (August 2025)
    • Best credit card promotions in Singapore (August 2025): Citibank, DBS, HSBC, UOB and more
    • Ninja Van cuts 12% of Singapore workforce after 2 rounds of layoffs in 2024
    • Goh Cheng Liang, Nippon Paint billionaire and richest Singaporean, dies aged 98
    • Singapore upgrades 2025 growth forecast but warns that outlook remains 'clouded by uncertainty'

Latest

Latest
  • With no Ukraine peace deal, Trump again threatens Russia sanctions
  • South Korea's Lee in Japan to shore up ties before meeting US President Trump
  • Trump threatens federal intervention in Chicago, government takeover in DC
  • Gambian man sentenced to more than 67 years after US conviction for torture
  • Meta signs over $12.8b cloud deal with Google, source says
  • Putin sees 'light at end of the tunnel' in Russia-US ties, cooperation in Arctic and Alaska
  • Online death of abused French streamer was not result of trauma, prosecutor says
  • Eswatini government faces court challenge for accepting US deportees
  • Troop costs, China in focus when South Korea's Lee meets US President Trump

In Case You Missed It

In Case You Missed It
  • Van driver in Malaysia arrested for dropping off school kids while vehicle was still moving
  • Malaysian teachers caught vaping on school grounds may face fines, up to 2 years' jail
  • Shoelace to tie umbilical cord: Woman in Malaysia goes into labour by roadside, passing motorists help deliver baby
  • Man remanded after wielding knife, trying to snatch baby in Penang supermarket
  • 2 Singapore drivers allegedly detained in Legoland for offering illegal ride-hailing services; cars seized
  • Vers likely to be launched in next decade: Chee Hong Tat
  • Malaysia's border control agency gives ICA cake to mark SG60
  • Tourist in Hong Kong killed after cabby, 80, crashes into pillar outside hotel
  • 2 Malaysian men nabbed at Woodlands Checkpoint for allegedly smuggling drugs worth over $150k into Singapore
This website is best viewed using the latest versions of web browsers.