Bloomberg reported that “according to bond documents, if investors do not receive money by the due date, there will be a ‘symbolic’ default on Monday.”
Bloomberg on Monday, June 27, reported that Russia has defaulted on sovereign debt. The deadline for paying $ 100 million in coupons expired on the night of June 27th.
“The extended period for repayment of approximately $ 100 million in final payments on government bonds expired on Sunday, and in the event of a default, the deadline is considered a default event,” the statement.
The situation was compared to 1918, when the Bolsheviks refused to pay the king’s debts.
At the same time, Bloomberg points out that “default is often symbolic and means little to Russians.”
Default is the default of the debtor to repay the debt. The state’s declaration of default reduces its credit ratings – it becomes difficult or impossible for the country to attract new loans, as a result, the limited infusion of external capital hinders economic growth.
Earlier, Bloomberg wrote that Russia was approaching default.
As a reminder, on June 23, the Russian Ministry of Finance fulfilled its obligations under Eurobonds to foreign lenders in rubles.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.