Kinh tế

Russia is advised to pay its debt in USD

USD. (Photo: THX/VNA)

Earlier, Russian officials stated that they had no choice but to pay in Rubleafter the country was blocked by the US from paying with Russian USD accounts deposited in US banks.

According to Moody’s, this action of the Russian side is considered not to comply with the terms of the bond sale agreement, which only allows payment in USD.

Therefore, Russia “could be considered insolvent” if it did not pay the $650 million in bonds in full by the end of the grace period on May 4.

A few days ago, another credit rating agency, S&P Global Ratings, also declared Russia “insolvent” due to not paying its bondholders in USD.

Before April 4, Russia could still pay in USD because it was still approved by the US government. However, last week, Washington decided to ban Moscow from accessing the dollars kept in its banks.

Russia’s military campaign in Ukraine has caused the U.S. Treasury Department sanctions on Russian financial institutions. The agency said it wanted to force Russia to use foreign currency reserves or find dollars from new sources to avoid default.

* Invite readers to watch the programs broadcast by Vietnam Television on TV Online and VTVGo!

You are reading the article Russia is advised to pay its debt in USD
at Blogtuan.info – Source: vtv.vn – Read the original article here

Back to top button