简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:Moodys Investors Service said that Russia may be in default after it made payments on dollar bonds with roubles.
Russia may be in default after it tried to service its dollar bonds in roubles due to Western sanctions over the war in Ukraine, Moody‘s said, Moscow’s first major default on foreign bonds since the years following the 1917 Bolshevik revolution.
Russia made a payment due on April 4 on two sovereign bonds – maturing in 2022 and 2042 – in roubles rather than the dollars it was mandated to pay under the terms of the securities.
Russia “therefore may be considered a default under Moody‘s definition if not cured by 4 May, which is the end of the grace period,” Moody’s said in a statement on Thursday.
“The bond contracts have no provision for repayment in any other currency other than dollars.”
Moodys said that while some Russian eurobonds issued after 2018 allow payments in roubles under some conditions, those issued before 2018 – such as those maturing in 2022 and 2042 – do not.
“Moody‘s view is that investors did not obtain the foreign-currency contractual promise on the payment due date,” Moody’s said.
Russia has repeatedly said it wants to service its debt but counters that the West has prevented it from paying by imposing crippling sanctions after President Vladimir Putin on Feb. 24 ordered a special military operation in Ukraine.
Russia in 1998 defaulted on $40 billion in domestic debt and devalued the rouble under President Boris Yeltsin because it was effectively bankrupt after the Asian debt crisis and falling oil prices shook confidence in its short-term rouble debt.
This time, Russia has the money but can‘t pay because the reserves – the world’s fourth largest – that Putin ordered be built up for just such a crisis are frozen by the United States, European Union, Britain and Canada.
It could be Russias first major debt default in more than a century. Even when the Soviet Union collapsed, Russia assumed its foreign debt.
In 1918 Bolshevik revolutionaries under Vladimir Lenin repudiated Tsarist debt, shocking global debt markets because Russia then had one of the worlds biggest foreign debt piles.
With the bonds worth nothing, some holders of the Tsarist notes used them as wallpaper. The Soviet Union under Josef Stalin stopped servicing loans to the United States and Sweden after World War Two.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
Every professional trader follows a structured approach to ensure they are well-prepared, disciplined, and able to seize opportunities with confidence. Whether you are a seasoned investor or an aspiring trader, adhering to a robust daily checklist can significantly enhance your performance. Use this checklist to check if you are a qualified trader
Interest rate changes determine currency attractiveness, influencing capital flows and exchange rate trends. Understanding this mechanism helps investors navigate the forex market effectively.
A 47-year-old housewife in Malaysia recently fell victim to an online investment scam, losing a substantial sum of RM288,235 after engaging with a fraudulent scheme advertised on Facebook.
In today’s digital age, reviews influence nearly every decision we make. When purchasing a smartphone, television, or home appliance, we pore over customer feedback and expert opinions to ensure we’re making the right choice. So why is it that, when it comes to choosing an online broker where real money and financial security are at stake many traders neglect the crucial step of reading reviews?