Washington - KUNA
International Monetary Fund (IMF) Managing Director Christine Lagarde warned that a U.S. debt default would have negative impacts inside and outside the United States. Speaking during a press briefing here on Thursday, Lagarde said: \"There would be very, very negative consequences for the U.S. economy, and there would be very negative consequences outside of the U.S. economy.\" She noted that the IMF \"does not take a stand and does not make a recommendation as to how politically this matter can be resolved.\" \"This is not for the IMF to say. We don\'t take a political view. We only look at the economic consequences of measures decided anywhere in the world,\" she added. She pointed out that \"when it affects the largest economy in the world, we are bound to not only look at the immediate domestic consequences, but we also have to look at what happens elsewhere, and we have to engage in a dialogue with our members to see how they can best prepare for that and anticipate.\" \"That\'s a work that is underway. I hope in a few weeks\' time we will look back and say, what a waste of time that was time because it was unnecessary because it didn\'t happen,\" she remarked. Lagarde said: \"We have to look at potential risks, however improbable they are likely to materialize.\" \"The failure to raise the debt ceiling would cause serious damage to the U. S. economy, but also to the global economy, as a result of the spillover effects,\" she reiterated.