Russia has defaulted on its foreign debt, says S&P

[Viet]

​

By Anna Cooban, CNN Business
Updated 11:48 AM EDT, Mon April 11, 2022

London(CNN Business)

Russia has defaulted on its foreign debt because it offered bondholders payments in rubles, not dollars, credit ratings agency S&P has said.

Russia attempted to pay in rubles for two dollar-denominated bonds that matured on April 4, S&P said in a note on Friday. The agency said this amounted to a "selective default" because investors are unlikely to be able to convert the rubles into "dollars equivalent to the originally due amounts."

According to S&P, a selective default is declared when an entity has defaulted on a specific obligation but not its entire debt.

to make the payments of capital and interest, but S&P said it does not expect it will convert them into dollars given Western sanctions that undermine its "willingness and technical abilities to honor the terms and conditions" of its obligations.

A full foreign currency default would be Russia's first in more than a century, when Bolshevik leader Vladimir Lenin repudiated bonds issued by the Tsarist government.

Russia has defaulted on its foreign debt, says S&P

Russia has defaulted on its foreign debt because it offered bondholders payments in rubles, not dollars, credit ratings agency S&P has said.

amp.cnn.com

 

[WotTen]

Bolshevik leader Vladimir Lenin repudiated bonds issued by the Tsarist government.

The debts of the Tsar died with the Tsar.

 

[HttpError]

The debts of the Tsar died with the Tsar.

Now it is time for Tsar Bomba, anyone who wants their debt back Face Russia's Tsar Bomba.

 

[UKBengali]

Who cares as this is technical issue due to Western sanctions against Russia.

 

[PakFactor]

Nothing is more beautiful than seeing a hungry bear who's pushed so hard he'll lash out down the road...

 

[MultaniGuy]

Maybe China may bail Russia out. But of course Russia must reciprocate as well.

 

[Menthol]

It's the debt paid to the Western-owned financial institute.

It's them who block the dollar, and it's them who ask for the dollar.

It's their money anyway.

Self-idiot!

 

[Viet]

Who cares as this is technical issue due to Western sanctions against Russia.

The markets care. Now stands in the news Russia is bankrupt. Banks, financial institutions, brokers will put Russia on bankruptcy list.

It's the debt paid to the Western-owned financial institute.

It's them who block the dollar, and it's them who ask for the dollar.

It's their money anyway.

Self-idiot!

Wrong. Putin still receives dollars and euros for gas. He can pay however he refused.

 

[kingQamaR]

No that's not quite how it works. It's credit rating effects the level of interest it pays on existing loans and if it defaults nobody anywhere will want lend money to Russia. This is big deal and will make it more difficult for Putin to fund his war machine. By away there are plenty of frozen Russian assets to cover a lot of the debit, I’m not sure the west will do this but, is possible

 

[Beast]

It's the debt paid to the Western-owned financial institute.

It's them who block the dollar, and it's them who ask for the dollar.

It's their money anyway.

Self-idiot!

Precisely, these western confiscated Russia property from their countries and they expect Russia not to hit them back with default or other methods?

 

[Viet]

Precisely, these western confiscated Russia property from their countries and they expect Russia not to hit them back with default or other methods?

The sanctions have nothing to do with investors who lend Russia the money. Investors are private persons. Putin can pay back in gold if he refuses to pay in dollars or euros. He sets 5,000 rubles for 1g gold. So he can pay back the debts in gold barrens. Investors can sell gold to dollars or euros. Nobody wants rubles.

He must keep his promises.

 

[Beast]

The sanctions have nothing to do with investors who lend Russia the money. Investors are private persons. Putin can pay back in gold if he refuses to pay in dollars or euros. He sets 5,000 rubles for 1g gold. So he can pay back the debts in gold barrens. Investors can sell gold to dollars or euros.

He must keep his promises.

You expect to keep his promised when West dont? How naive you are.

West slapped Chinese with sanction and we slapped them back. There is nothing wrong to that. And dont talk moral or values to us when you dont.

 

[Viet]

You expect to keep his promised when West dont? How naive you are.

West slapped Chinese with sanction and we slapped them back. There is nothing wrong to that. And dont talk moral or values to us when you dont.

Did I say anything morality? No.
I just share technical aspect.
Russia is bankrupt.
Or selective default per S&P.

About China, I bet chinese banks will stop lending money to Russia. Unless Putin can back the borrowings by gold reserves. Or you accept rubles?

 

[Beast]

Did I say anything morality? No.
I just share technical aspect.
Russia is bankrupt.
Or selective default per S&P.

About China, I bet chinese banks will stop lending money to Russia.

Russia is a huge country with plenty of natural resources. You think they lack the asset for more money? China of cos will lend money to Russia when they have things we need. Its a good business for China.

 

[kingQamaR]

So Russia is in default and USA isn't with its national debt of 30+ Trillion we live in cloud cuckoo land