Default cancelled? Russia stolen by foreigners $117 million in foreign currency
Our country has experienced debts of foreigners in dollars
A photo: Shutterstock
For two weeks now, the media have been discussing the topic of Russia’s possible default with all sides. Will be – will not be, will pass – send to hell …
The topic is not contained in an empty space. The fact is that March 15 Russia should have been for the flight $117 million on its Eurobonds in foreign currency. Eurobonds – these are securities that are issued by the Russian government to borrow – including abroad. Foreign buyers had to pay in foreign currency. 300 billion US dollars from the gold and foreign exchange reserves of our country, as you know, “froze” the countries of the West. Our Ministry of Finance stated that we will pay everyone – but in rubles, since you have “frozen” our currency. Experts objected that this was a “fake” payment: perhaps pay in dollars, so ensure it. Otherwise, it will be considered a non-payment, which is also a default.
Breathe, gentlemen. Hour X passed, no default. By chance, for now. Here is what the Ministry of Finance wrote this morning on its Russian website:
– Payment order on coupon income on bonds of external bonded loans of the Russian Federation… in the total amount of USD 117.2 million due on March 15, 2022, sent to a foreign correspondent bank on March 14, 2022, executed.
In general, happy in dollars, that’s all. How? The Americans have already explained this. US Treasury announced that “the current sanctions regime does not return the results in servicing Russia’s sovereign debt in dollars – at least until the license expires at the end of May.”
– There is a general license (to repay the debt in dollars – Ed.) issued by the US Treasury in one of the American banks, on a correspondent account that holds part of the blocked Russian reserves. Apparently, this bank was given a decision on payments, – says Evgeny Kogan, professor at the Higher School of Economics, author of the Bitkogan telegram channel.
So it turns out that the Americans nevertheless unfrozen part of the Russian reserves – especially for the payment of bonds. The license to issue debt expires on May 25, 2022. We can not. But, firstly, you can request a license renewal. Secondly, there are still two months ahead, anything can happen.
– In the current conditions, when the situation is changing not only daily but hourly, such a period is very long. During this time, the situation can change significantly, both in one direction and in the other. But at least while you can exhale, – says Evgeny Kogan.