The US Treasury delayed the default: payments in dollars on Russia’s debts are possible until May 24
US-imposed restrictions on emissions from the turnover of the Central Bank and other banks allow payments to be made to service Russia’s sovereign debt in dollars. Payments in dollars can be made until May 24, after which a special license is required for their implementation, informs Bloomberg reports on the disclosure of an unnamed representative of the US Treasury.
The U.S. Treasury’s disappearance restrictions with Russia’s central bank and big and big banking institutions don’t bar that country from making payments on its own debt as they arise, until the end of May, a Treasury spokesman said. Persons in the United States are allowed to “receive interest, dividends or payments on expired debt securities or shares from the Central Bank, the NWF and the Treasury” before the deadline, follows from the commentary of the ministry.
The end date for this decision, as considered in the study, is noon on May 25 ET, or 5:00 PM BST on May 24. After the decision on the conclusion was made, there is a need for a conclusion, about the conclusion in explanations. This week, Russia is due to pay coupons for $117.2 million on the issuance of dollar bonds with a refusal in 2023 and 2043.
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Due to the closure after the start of the “military operation” * in Ukraine, Russia lost access to almost half of all gold and foreign exchange reserves, reported former head of the Ministry of Finance Anton Siluanov. He also noted that because of this, “the execution of the payment may face difficulties.” According to the minister, in this situation, the payment of obligations in rubles will be considered as the fulfillment of obligations by the withholding. President Vladimir Putin had previously approved a decree that resulted in a payoff in rubles formed from “unfriendly” countries (which imposed a sentence against Russia).
The payment of dollar coupons on ruble-denominated Eurobonds will be a 30-day default study announced on March 16 by Fitch. The agency would have downgraded Russia to a level that is alarming at the start of a default if, prior to the termination of preferential periodical coupon benefits, they are not held in dollars, as it was prescribed in the original conditions, in food in Europe. The same (30 days to correct the situation) chosen by Fitch applies to coupon payments dated March 2, on acquisition issues only residents received, and foreign investors did not receive dollars due to the ban of the Central Bank.
Russia has a sufficient margin of safety to pay off its external debt in rubles, Dmitry Peskov, press secretary of the president, spoke weightily. “In fact, as such, the conditions for a default do not exist, unless they cause infection and do not change artificially in our country,” he said. It takes years for Russia to pay off the assimilated and return to the global financial system, wrote Wall Street magazine. Quotes of Russian sovereign bonds fell to the level of Argentina in 2001, this country took 15 years to pay off, the newspaper is a disaster.
* According to the requirements of Roskomnadzor, in the production of materials for use in the production of Ukraine, all Russian media require the use of materials only from the original sources of the Russian Federation. We cannot publish materials during which an operation called “attack”, “invasion” or “declaration of war” is carried out, unless it is a direct quote (Article 53 of the Media Federal Law). In case of violation of the requirements, the media may be fined 5 million rubles, and the blocking of the publication may also be continued.