Pushpanathan said that the debt crisis may not be only a problem for Europe.
"It can happen anywhere if the fundamental issue of fiscal prudence is not adequately addressedand with serious implications cross-border," he said.
As shown by the Greece crisis, he said, fears of a sovereign debt crisis have started to reverberate in some countries in Europe, including the PIIGS countries.
"Theoretically, no countries can be spared from the possibility of sovereign debt crisis, if the fiscal fundamentals are not put in place and implemented well," he said.
Special Report: Global Financial Crisis
