The International Monetary Fund (IMF) believes that Russia may default on its foreign debt after most of Moscow’s foreign exchange reserves have been blocked by Western sanctions, the fund’s managing director Kristalina Georgieva told DPA.
“We no longer consider Russia’s default unbelievable,” Georgieva told CBS. She pointed out that due to the imposed sanctions, the country is facing a deep recession.
The devaluation of the ruble has already significantly reduced the purchasing power of Russians, Georgieva added.
Most of Russia’s foreign exchange reserves have been blocked due to sanctions, which makes it difficult to stabilize the ruble.
“Russia has the money to service its debt, but it does not have access to it,” Georgieva said.