Economist Sonin explained why there is no point in Russia to be afraid of a default – Rosbalt

There will be no new consequences for a possible default in Russia, says professor from the University of Chicago, economist Konstantin Sonin.

He recalled that according to the expectations of rating agencies, the default should occur on the coming Wednesday, when Russia must, but will not be able to make the next payment on its debts.

“Citizens have absolutely nothing to worry about – this event will not have any new consequences,” Sonin said.

According to him, everything that could have worsened as a result of the default has already worsened. “Now there is no danger of a “default”. The dollar exchange rate has already risen sharply (and was not tied to anything), foreign currency deposits have already been frozen (and, I think, will be partially expropriated), inflation is already forecast by the Central Bank at 20%. That is, all the bad consequences of the default are already in place, there will be no new ones, ”the economist writes on social networks.

He notes that under other circumstances, the refusal to pay debts – formally, the government is going to pay off in rubles, but according to the contract, this is also a default on obligations – could lead to a deterioration in the investment climate, but, as the expert notes, the investment climate can no longer worsen.

Konstantin Sonin believes that investments can begin to flow only after the change of regime. He did not rule out that the investments of those companies that are already present in Russia will return again after the withdrawal of Russian troops from the territory of Ukraine, but new money and firms will appear only after a radical change in political conditions.

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