ECB governor does not believe in possibility of default in U.S.

12:40 - 17.04.2023

April 17, Fineko/abc.az. The U.S. cannot allow a default on debt obligations, ABC.AZ reports, quoting European Central Bank’s president Christine Lagarde.

In her opinion, if this happened, there would be "very, very negative consequences not only for this country, where trust would be shaken, but also for the whole world".

"I just can't believe that they would allow such a serious catastrophe as the U.S. debt default. It's impossible. I can't believe this could happen," Lagarde said.

The Joe Biden administration is calling on Congress to raise the debt ceiling, which is now set at $31.4 trillion. Representatives of the Republican Party, who control the House of Representatives, are skeptical about this. Finance Minister Janet Yellen said in March that the ministry would have to take "extraordinary measures" after reaching the debt ceiling. Cash and emergency measures will last, according to her estimate, until about June.