As a result of staggering sanctions, the cost of the war in Ukraine and an underperforming economy, the Russian government could intentionally default on its national debt, but economists with the International Monetary Fund said such an act wouldn’t have significant impact on the worldwide economy, Reuters reports.
The exposure of Western banks to loss should Russia default is about $120 billion, a significant amount but not enough to hobble the banks’ operations. When asked if Russia’s default would cause a panic in worldwide markets, International Monetary Fund Managing Director Kristalina Georgieva said simply, “No.”