World

Russia is close to default – UNIAN

Russia defaulted on its external debt by offering bondholders payments in rubles instead of dollars.

Repayment of debt in another currency for investors is not considered the fulfillment of obligations / photo by REUTERS

After four months of Russia’s full-scale military invasion of the territory of independent Ukraine, the aggressor country made payments in the amount of 234.85 million dollars on external debt in rubles.

This situation means non-fulfillment of obligations and, as a result, default. About it reported Ministry of Finance of the occupying country.

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“Cash for the payment of coupon income on bonds of external bond loans of the Russian Federation maturing in 2027 and 2047 in the amount of 12.51 billion rubles (the equivalent of 234.85 million US dollars) was received by the paying agent for Eurobonds ( NPO JSC “National Settlement Depository”)”, – stated in the Russian department.

At the same time, the aggressor country does not recognize the fact of the approaching default and considers the obligations fulfilled in full. However, both issues are denominated in dollars and must be paid in dollars. Repayment of debt in another currency for investors is not considered the fulfillment of obligations.

The war against Ukraine and the default of the Russian Federation:

February 24, 2022 RF invaded independent Ukraine. Shelling and bombing of Ukrainian cities began. Massively killed the civilian population of Ukraine.

On February 27, 2022, information appeared that Belarus could declare war on Ukraine.

The occupiers are shelling the peaceful cities of Ukraine. Agreements on green corridors are systematically violated. Evacuation convoys are under fire, which complicates both the evacuation of the civilian population and the delivery of food and medicine to hot spots. There is a humanitarian catastrophe in many settlements.

Following Russia’s invasion of Ukraine, S&P downgraded Russia’s credit rating from BB+ to CCC-.

March 8, 2022 S&P lowered credit ratings 52 Russian companies.

Russia defaulted on its external debt by offering bondholders payments in rubles instead of dollars.

April 23, 2022 were named terms of full default Russia.

If the emission prospectuses do not provide for ruble payments, and foreign currency payments are not received on the accounts of creditors before the end of the grace period for a period of one month, this will mean Russia’s default.

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