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Russia pays 2 bonds of $650 million before default deadline

Russia paid two bonds of $650 million before the default deadline - Photo 1.

Headquarters of the Russian Ministry of Finance in Moscow – Photo: TASS

In a statement on April 29, Russia’s Finance Ministry said the country had made payments totaling about $650 million for two bonds maturing in 2022 and 2042 in US dollars, according to the news agency. AFP.

In early April, Russia attempted to settle these bonds in rubles after the United States prevented Russia from paying off dollar-denominated debts held by American banks.

In response, the credit rating agencies downgraded Russia’s credit, and warned that paying debt in the local currency would create sovereign debt.

Moody’s Investors Service (Moody’s Investor Service, also known as Moody’s scale, is the rating of credit bonds in business) considers it to be in default if Russia does not pay these bonds in USD. on 4-5, deadline within 30 days grace period.

Earlier, the Governor of the Central Bank of Russia, Elvira Nabiullina, assured “there can be no default”, although she added that Russia had difficulty paying.

About half of Russia’s foreign exchange reserves, worth more than $300 billion, have been frozen by Western countries as part of sanctions related to the military campaign in Ukraine.

According to CNN, credit rating agencies will likely consider Russia a default if Moscow fails to pay interest or repay loans issued in dollars or euros within the grace period.

The Kremlin rejects the idea of ​​default, saying Russia has enough money and is ready to repay it. But Russia accused the West of pushing Russia into a “false default” through unprecedented sanctions, and vowed to meet its debt obligations.

Russia has a total of 15 international bonds outstanding, worth about $40 billion. Moscow paid some interest due on European bonds before Washington blocked the transactions.

Russia considers using gold Russia considers using gold ‘back’ for the ruble?

TTO – Reuters news agency quoted a Russian security official this week as saying linking the ruble to gold could give Russia more “sovereignty” over its financial system.

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