Let’s default: the acceptance group believes that Russia has not fulfilled its obligations under Eurobonds 05/27/2022
Part of the holders of Eurobonds “Russia-2022”, which were excluded in the election year, expressed a desire to declare a default according to the paper, in connection with the failure to fulfill their obligations, said Forbes.
Investors believe that the Russian Federation should pay increased interest in the amount of $1.9 million for late payment.
The corresponding complaint was filed by the scope group with the Credit Derivatives Membership Determination Committee (Credit Derivatives Determination Committees). They redeem that Russia redeemed Eurobonds not at a fixed fee, but during the grace period, respectively, investors are entitled to an increased percentage for delay. At the same time, despite the need for Eurobond holders, the Russian Federation ignores this requirement. This, according to the observation, is the basis for declaring a default.
The Ministry of Finance announced the fulfillment of obligations on Eurobonds in foreign currency on April 29, 2022. In particular, the Ministry paid coupon income and reimbursed a significant amount on bonds of external bond loans of the Russian Federation maturing in 2022, issue No. 12840060V “Russia-2022” in the amount of USD 564.8 million ). ).
In addition, coupon income was paid on suspicious bonds of the Russian Federation maturing in 2042 No. 12840061V “Russia-2042” in the amount of USD 84.4 million.
All payments were transferred to the paying agent for obligations under Eurobonds (Citibank, NA, London branch), noted in the Ministry of Finance.
“Payments were made in the currency of the Eurobond issue — in US dollars. Thus, the obligations to service sovereign Eurobonds are fulfilled in compliance with the conditions, completing the documentation,” the Ministry of Finance reports.
On Friday, May 27, the Credit Derivatives Committee considered this issue, but the meeting was postponed to May 31.