Posted on Apr 13, 2022
3 things to know as Russia heads to a historic debt default
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https://www.npr.org/2022/04/12/ [login to see] /russia-historic-debt-default-sanctions-invasion-ukraine
Russia is on the verge of defaulting on its foreign debt for the first time since the Bolshevik Revolution more than a century ago.
Over the past week, the country faced two payment deadlines on bonds it previously sold to foreign investors. The combined interest was worth nearly $650 million, and Russia was supposed to have made the payments in dollars, according to the terms of the bond contracts.
But citing severe sanctions imposed by the U.S. and its allies, Russia made the payments in rubles.
Russia is on the verge of defaulting on its foreign debt for the first time since the Bolshevik Revolution more than a century ago.
Over the past week, the country faced two payment deadlines on bonds it previously sold to foreign investors. The combined interest was worth nearly $650 million, and Russia was supposed to have made the payments in dollars, according to the terms of the bond contracts.
But citing severe sanctions imposed by the U.S. and its allies, Russia made the payments in rubles.
3 things to know as Russia heads to a historic debt default
Posted from npr.org
Russia
Ukraine
Finance
Money
Posted 2 y ago
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PO1 William "Chip" Nagel
..."Is a default now inevitable?
It's looking increasing likely.
Russia says it wants to pay foreign investors, but it argues it can't do that in dollars because of the sanctions.
The U.S. and its allies have imposed a number of wide-ranging sanctions on Russian financial institutions and have prevented many global banks from working with Russia. They have also restricted Russia's ability to tap its more than $600 billion in foreign exchange reserves.
So the U.S. has indeed made it exceedingly difficult for Russia to make those scheduled payments in dollars, as part of its efforts to isolate the country from the global financial system."...
..."Is a default now inevitable?
It's looking increasing likely.
Russia says it wants to pay foreign investors, but it argues it can't do that in dollars because of the sanctions.
The U.S. and its allies have imposed a number of wide-ranging sanctions on Russian financial institutions and have prevented many global banks from working with Russia. They have also restricted Russia's ability to tap its more than $600 billion in foreign exchange reserves.
So the U.S. has indeed made it exceedingly difficult for Russia to make those scheduled payments in dollars, as part of its efforts to isolate the country from the global financial system."...
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