On 16/05/2023 the principal attorney of L&P commented on the matter of elevation of the US state debt threshold and probability of default of the United States.
“State spending amounts to over 30% of the GDP of the United States. Declaration of default will cause an abrupt reduction in state expenses, which will immediately affect profitability of US state bonds and, in all probability, will cause an overall slowdown of the economy and decrease in energy prices. There is also an opinion that such an event may trigger inflationary processes in the US”, – says Alexander Linnikov.
