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

[CAPRICORN-88]

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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

These sovereign debt of Russia are manageable and can be easily settled if not for the sanction imposed by the country whre S&P is based.

Russia said it will sued.

Russia's external Debt of GDP is very low compared with those of the US and her allies.

So these rating has no impact on Russia. She really don't need these loans.

 

[PakAlp]

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

How is this possible, 30Trillion debt and they still the rulers of the world.

 

[CAPRICORN-88]

UK external Debt to GDP alone is 285.45% compared with Russia 37.7%

China external Debt to GDp is 10.47% compared with says Japan at 77.9%

or India external Debt to GDP at 19.2% compared with Australia at 128%

The debt clock is still ticking away.

 

[CAPRICORN-88]

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.

Stop wasting your time with this troll. He won't understand a thing you are saying.

He believe he can DONG away Russia.

Russia does not need any financial assistance from China. Her economy is still doing fine.

There is an unverified report that Russia intends to lease its huge land banks to China in the Far East for agriculture and farming.

 

[UKBengali]

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

Russia has all the fuel and materials to fund its war machine.

What good is dollars or Euros when Russia uses Rubles to build tanks and sell food in Russia?

The only reason it needs dollars and Euros is to buy stuff on the international markets where payment is demanded in those currencies.

It is switching to Chinese import substitution and China is already buying Russian oil and gas using Yuan. Guess which currency they can use to buy Chinese goods? Yes it will be the Yuan.

There is no economic strangulation possible of Russia as long as China and other “Global South” countries find other ways to trade with it as they are already doing.

PS - Russian assets are larger than its foreign debt and a resource rich country like Russia does not need to borrow.
It needs access to some tech and China is well able to provide good enough products.

 

[yuba]

Russia is bankrupt.

300,000 Russians leave the country since the war began.

Their brightest and best as well hopefully they get it handed to them in the east of Ukraine and lose the Crimea also that be a good may 9th march . Did you see the bbc news item on how many paratroopers it lost

 

[CAPRICORN-88]

Russia is bankrupt.

300,000 Russians leave the country since the war began.

Stop trolling.

Whether Russia is bankrupt or not is NONE of your business.

 

[TNT]

They seize 350 billion $ of russian reserves and then expect russia to pay their debt? Lolz
Putin be like, come and take it.

 

[Viet]

Stop trolling.

Whether Russia is bankrupt or not is NONE of your business.

Are you from Russia if not why is it your business? Should use the same standard.
I don’t know why you cheer looters and rapists. Russia economy will shrink 15 percent this year, inflation will spike 24 percent. That says Russia economic ministry.
Russia middle class will shrink by half.

Putin brings the Russians back to the dark days of Soviet Union. We will see how long Putin can feed the population with lies, cheat and nationalistic tone.

 

[mmr]

Their brightest and best as well hopefully they get it handed to them in the east of Ukraine and lose the Crimea also that be a good may 9th march . Did you see the bbc news item on how many paratroopers it lost

they didnt even bother to collect the dead army man....leaving it on open to feed by wild dogs.

just a shit hole pathetic country.

 

[Trango Towers]

S &P and moody was exposed at the last major recession as people who made up numbers and fudged figures. I wouldn't pay too much attention

 

[yuba]

they didnt even bother to collect the dead army man....leaving it on open to feed by wild dogs.

just a shit hole pathetic country.

Just cannon fodder to putin and his mates while their poor mothers weep. Saw a Ukrainian mother find her son in a well yesterday on youtube brought tears to my eyes the pain only a mother could know. Also saw an article where they raped a 11-year-old boy while making the mother watch tied to a chair.