The aggressor country, Russia, violated the terms of payment of its sovereign debt by failing to repay interest on the loan in time.
This was reported Business Insider.
“The Committee on the Determination of Credit Derivatives has found that Russia has launched an event of” insolvency “, violating the terms of repayment of sovereign debt”– it is said in the material.
The first external default in a century: what it will mean for Russia and why the Kremlin denies itRead what the default will mean for Russia and whether it will affect ordinary Russians in the article Word and Deed.
April 13, 2022, 9:10 p.m.
It is noted that in early April, Russia paid $ 649 million to its creditors. At first, the aggressor country tried to make payments in rubles against the background of Western sanctions due to the invasion of Ukraine, but shortly before the end of the one-month grace period, it still made payments in dollars, as required by the loan agreement.
“However, Russia did not include the $ 1.9 million in interest accumulated during the grace period, launching credit default swaps, which could lead to the payment of up to $ 3.2 billion in debt.”– the edition claims.
It will be recalled that payments on Russian government bonds did not reach the accounts of foreign investors as of Friday evening, May 27. If the money does not reach the accounts within 30 days, according to Russia’s foreign obligations a default will be declared.
It is worth noting that the default on foreign obligations has threatened Russia because of the US decision not to renew the license, which allowed Moscow to pay its debt in dollars despite sanctions. It ended on May 25. This US decision brings Russia much closer to default.
At the same time, the White House believes that Russia’s potential default will have minimal impact on the US and global economies.
After that, the Russian State Duma announced that it would service its foreign debt in rubles.
Russia has previously avoided default by paying two dollar-denominated bonds at the last minute.