Russia’s sovereign default became more likely after US bond market regulators announced that the Kremlin had failed to meet its obligations to service the public debt, predicting an increase in interest payments on dollar bonds in rubles. About it reported the Wall Street Journal.
The payments in rubles were made on April 6 after the US bank JPMorgan decided to transfer to the holders of Russian bonds 649 million dollars, which are frozen in the accounts of the Central Bank of Russia as a result of the acceptance. If Russia does not pay this amount by May 4, the expiration of such a grace period, it is formally allocated in a state of default or, as Moody’s analysts write, such a situation “may be applied as a default.” The debts that Moscow refuses to service amount to $6 billion.
The Ministry of Finance of Russia, which fulfilled the obligation, contained interest on debts in rubles. In the register of fees, which in Russia is sufficient for mandatory servicing and exclusion of all its debt obligations, wrote RBC.