Given the fact that this concept can only be applied to individuals and companies, bankruptcy of Russia is impossible. About this “Prime Minister” stated Oksana Karpenko, Associate Professor of Economics, RUDN University.
Default is when a borrower refuses to meet its obligations under a loan or bond for any reason. Bankruptcy is the inability of the debtor to pay these debts recognized by the court or recognized out of court. These concepts are not identical in terms of economic content and legal basis.
According to him, bankruptcy can only be for individuals and companies, and such a concept does not apply to the country. In addition, bankruptcy occurs only when it is completely impossible to somehow repay debts. Default, in turn, does not always lead to bankruptcy.
He added that in the event of bankruptcy, the debtor’s property could be sold under the hammer. In the event of a default, an unstable economic situation is possible, in which counterparties will refuse to enter into contracts.
8 June, Press Secretary of the President of Russia Dmitry Peskov commented Sanctioning the National Reconciliation Repository. According to him, the West is pushing Russia into an artificial default.