The default on external obligations began to threaten Russia due to the US decision not to renew the license, allowing Moscow to repay its public debt in dollars, despite sanctions.
Payments on Russian government bonds did not arrive on the accounts of foreign investors on the night of May 27, Bloomberg reported.
May 27 is the payment date for the Russia-2026 and Russia-2036 bonds (USD 71.25 million and EUR 26.5 million, respectively). According to the agency, if the money is not received in the accounts within 30 days, a default will be declared on Russian foreign obligations.
The National Settlement Depository, to which the Ministry of Finance of the Russian Federation transferred the money for payments on May 27 in advance, said on Friday night that the funds for the payment had been withdrawn from the account.
Talk about Russia’s default. What does this mean
The Russian Ministry of Finance believes that it has fulfilled its obligations by transferring money to the NSD. According to Bloomberg, NSD is the registered owner of the bonds, which “could support Russia’s argument that it avoids default, even if the money is not sent to the accounts of individual investors.”
The default on external obligations began to threaten Russia due to the US decision not to renew the license, allowing Moscow to repay its public debt in dollars, despite sanctions.
On May 26, Russia’s Finance Minister Anton Siluanov said the technical default threatening Russia would “not affect the economy in any way.”
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Source: korrespondent
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.