2022-09-27

Bloomberg: Russia is hours away from first default in 100 years

The American media announced Russia's technical default on its external debt tomorrow, June 27

Russia is “a few hours away from default”, and this will happen in the first 100 years, According to Bloomberg.

As the news agency explains, the grace period for paying interest on government bonds in the amount of about $100 million expires on June 26.

If investors do not receive the due funds by Monday, it will be fixed « the fact of non-fulfillment of obligations”, and already on June 27 there will be a technical default on the external debt.

Such an event will occur for the first time in 100 years – the last time Russia defaulted on its external debt was in 2018.

However, under the current circumstances, the Russian authorities will not officially declare a default, the agency notes.

Recall that in April the United States banned Russia service external debt without renewing a license allowing holders of Russian sovereign bonds to receive payments. The license expired on May 25.

On May 27, the Ministry of Finance of the Russian Federation announced that the National Settlement Depository, using frozen reserves, paid out two issues of dollar Eurobonds in the amount of $ 71.25 million and 26.5 million euros maturing in 2026 and 2036.

On May 30, Finance Minister Anton Siluanov announced that Russia would settle accounts with holders of Russian Eurobonds using a mechanism similar to the payment scheme for Russian gas in rubles.

Similar payments in rubles were made on Eurobond coupons maturing in 2027 and 2047.

At the same time, the head of the Ministry of Finance refused to consider the termination of payments on external debt in foreign currency as a default, since this became impossible due to sanctions imposed by the West.

Formerly, Russian President Vladimir Putin signed a decree on the payment of foreign currency debt in rubles. To do this, ruble accounts of the “I” type were opened for all foreign investors without their personal presence.

The very next day, the Ministry of Finance paid off Eurobonds in rubles for the first time under the new scheme.

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Источник topnews.ru