Russia went into default for the first time in 100 years

Russia went into default for the first time in 100 years

Russia objected to the default designation, saying it has the funds to cover any due and was forced not to pay. Last week it announced that it would repay its $40bn of sovereign debt in rubles, criticizing a “force majeure” situation that it said was artificially manufactured by the West.

The formal declaration of a default, generally by risk rating agencies, will not arrive in the next few hours. This is because, as part of Western sanctions following the invasion of Ukraine, credit rating firms stopped monitoring Russia’s debt.

“It is a grim sign of the country’s (Russia) rapid conversion into an economic, financial and political pariah,” the agency said. At the same time, he stressed that, for the time being, taking into account the damage already suffered by the Russian economy and market, The suspension of payments has at the moment a “rather symbolic character and it is not a big deal for the Russians”.

Russia accuses the West of preventing the payment of its debt with measures such as the blockade of its national depositaryhe by the European Union and the non-renewal by the United States of the license that allowed Moscow to temporarily pay its debt in dollars.

However, the Russian Ministry of Finance announced before that it is not considered suspended, arguing that on May 20 it transferred funds to the National Settlement Depository (NSD). Today there has still been no official statement from the Russian authorities in relation to the news released by Bloomberg.

Source: Ambito

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