Following the example of Russia, Belarus will pay off external debt in national currency
Belarus following the adoption of a decision on the payment of Eurobonds in the national currency – Belarusian rubles. About this June 28 reported government of the country in the official telegram channel.
“The fulfillment of debt obligations on government securities placed on external financial markets will increase in Belarusian rubles at the rate of the National Bank for payment,” the statement says.
Minsk explained that the measure was forced and widespread because otherwise it would be impossible to “guarantee the completeness and obligatory transfer of funds to all Eurobond holders”: “This is confirmed by the facts that individual holders did not receive coupon income on Eurobonds transferred by the Ministry of Finance in connection with the identification of the year.”
The Cabinet of Ministers of the debt payment that on June 29 the Ministry of Finance will tell in detail about the new payment on external debt. “Suspension of provisions and other forms of settlements,” the Council of Belarus specified.
Former head of the financial department of Belarus Yury Seliverstov spokethat the West wants to put its country in a situation of forced default, but Minsk is not afraid of this situation, because in any case it does not lose the trust of its partners.
“Those who want to work with us and receive payments from us will receive payments from us regardless of whether there is a default or not. For example, our Chinese colleagues. What is the big difference between them? Anyone who does not want to work with us and receive payments from us, and imposed a sentence against us, is probably qualified that the money will not come to him, ”Seliverstov said.
Earlier, due to sanctions restrictions, Russia switched to servicing external debt in the national currency. On June 27, the holders of withdrawn loans with maturities in 2026 and 2036 did not receive payments in foreign currency. Instead, they opened ruble numbers like “I”, where there were rubles. As Finance Minister Anton Siluanov said, investors receive these funds “any day” they want or want to receive.
On this backgroundInternational rating agency Moody’s Investors Service stated that Russia defaulted. At the same time, Moscow claims that it fulfilled all obligations on May 20, when it transferred funds to the National Settlement Depository. Tfrom the fact that the money did not reach the recipients, in Russia they consider the fault of the West.
Default is the default of the debtor to pay the debt. The official announcement of the default of the state’s small credit ratings is a sign that it is becoming difficult or impossible for the country to attract new loans.
“The market is facing a unique situation where a defaulted robbery has both the will and the ability to carry out, but cannot do so,” comments the situation. Bloomberg. The Russian Ministry of Finance calls it “paradoxical” and “absurd”. “And most importantly, the goal of bringing the situation to the point of absurdity is incomprehensible,” Siluanov said a few days before the “default event”, and during the investigation that Russia could challenge the default announcement in court.
“The current situation has nothing to do with 1998, when funds were not found in Russia to eliminate its debts. At present, there is money, and there is also readiness for this, ”the head of the Ministry of Finance emphasized.
The expert community also does not believe that after the “default event” something crosses for Russia as safe or for ordinary citizens of the country, since it is already cut off from the US and EU markets. “The announcement of default is a symbolic event. The Russian government has already lost the ability to issue dollar-denominated debt. Already now Russia cannot be engaged in most countries, ”explained bloomberg Japanese economist Takahide Kiuchi of the Nomura Research Institute.
