Trade Disruption in Case of Brexit Risk Factor for EU Economy - IMF

Britain's exit from the European Union could disrupt trade, IMF's European department deputy director said.

LONDON (Sputnik) — A UK exit from the European Union has been identified as a risk factor for the EU economy and would disrupt trade and financial services, International Monetary Fund (IMF) European Department Deputy Director Mahmood Pradhan said Friday.

"For the euro area, it's really uncertain about what the cost of it might be, what the impact might be. The disruption of trade or financial services will undoubtedly have some impact," Pradhan told reporters while presenting the May 2016 Central, Eastern and Southeastern Europe Regional Economic Issue (REI) report.

The United Kingdom leaving the European Union following a "yes" vote in the upcoming Brexit referendum would cause uncertainty partly due to the need to determine new trade arrangements with the European Union, he added.

UK citizens are set to vote on June 23 in a referendum on the country's EU membership, after Cameron and the leaders of the 27 other EU member states reached a deal in February to grant the United Kingdom a special status within the bloc.