Announcement of default to disrupt macroeconomic stability – EBA

12:44, 28.05.2019 1 min read

The European Business Association (EBA) insists on the need to continue cooperation with the International Monetary Fund (IMF), since declaring a default will disrupt macroeconomic stability.

"It is not a secret for anybody that not every investor will risk entering a default country, which is not able to answer for its obligations to international partners," the press service of the business association said, citing EBA Executive Director Anna Derevyanko.

She said that this is, first of all, reputational risk, which would entail negative consequences.

Instead, the authorities should unite efforts to continue cooperation with the IMF and implement structural reforms that will increase the country's attractiveness for domestic and foreign investors, the EBA added.