International News

Moody’s Declares Russia in Default – Vindobona.org

People ›Other ♦ Published: June 26, 2022; 10:10 ♦ (Bindbona)

U.S. company Moody’s has announced in New York that it is concerned about interest payments on two government bonds that lenders have not received even after the 30-day default deadline.

The Russian government has defaulted on its foreign debt for the first time since 1918. / Image: © Wikimedia Commons / Naotokurihara / CC BY-SA 4.0

Rating agency Moody’s has determined that Russia has defaulted on its loans to international investors because they have not been repaid on time.

Reuters reports that some Taiwanese bondholders have failed to pay interest as the deadline has passed, indicating a default. According to an anonymous source quoted by Reuters, Russia was due to pay $ 100 million in coupons on Eurobond on May 27 – $ 29 million on a Euro-denominated 2036 bond and $ 71 million on a dollar-denominated 2026 bond.

In most cases, credit rating agencies downgrade a country’s rating when it defaults, but not in Russia, which is no longer rated by most agencies due to the war in Ukraine.

The Russian government has defaulted on its foreign debt for the first time since 1918, and according to Moody’s, economic sanctions imposed by the West since its invasion of Ukraine have damaged the country’s ability to pay.

Bankruptcy in the conventional sense is not happening here. Due to Western sanctions imposed over the war against Ukraine, the Kremlin’s well-stocked treasury makes it difficult to repay its debts abroad. According to the Russian Interfax news agency, Kremlin spokesman Dmitry Peskov said that stopping Moscow’s payments because of the sanctions was “not our problem.”

Moody’s




Source link

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button