Photo - © Yuri Shurchkov / Lori Photobank
Subscribe to RIA MO:
What is default, what causes it, and are there risks of it being declared in Russia in 2025? Read the RIA Novosti article.
What is default in economics
Photo - © Nikita Burdenkov / Lori Photobank
Default in the economy means the inability of an enterprise to financially meet its debt obligations. Accordingly, on a national scale, this is a violation of the country's solvency and the inability to pay off government debts - bonds, loans and other obligations. The very essence of default is that the debtor independently declares its financial insolvency and insolvency.
"Default means the failure of the borrower to fulfill its obligations cyprus mobile database to service the debt. In particular, default on government or corporate bonds is considered to be the delay by the issuer in paying interest on the bonds for at least one day. Sometimes, if such a delay occurs for only one or several days, mainly for reasons beyond the control of the issuer, this situation is called a "technical default" and does not mean that the issuer is unable to pay interest or fully repay its obligations to creditors. Accordingly, default of the state is the failure of the state to fulfill its obligations on bonds," comments leading analyst of Freedom Finance Global Natalia Milchakova.
Signs of default
Photo - © Mediastok.rf
Nikolai Vavilov, a specialist in the strategic research department of the TR company, named the main signs of an impending default on a national scale.