Russia’s sovereign default became more likely after market regulators in America announced that the Kremlin had failed to fulfill its obligations to serve Russia’s government by predicting the absorption of interest payments on dollar-denominated bonds. It is reported by 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.
Investors who buy insurance instruments that protect holders of Russian Russian boxes in the event of a default estimate its probability at 93 percent.