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Bloomberg writes, what is default, but the Russian Ministry of Finance does not agree with this Sunday, 26 June, the 30-day grace period for the payment of coupons on Eurobonds of the Russian Ministry of Finance in the amount of about $100 million has expired. According to Bloomberg, failure to pay interest by the deadline means, that Russia defaulted on its foreign obligations for the first time since 1918. At the same time, Bloomberg emphasizes, that the default is mostly symbolic and means little to Russians — they are more affected by accelerated inflation and the economic downturn. Russian Ministry of Finance 27 June said, that Russia fulfilled its obligations on time. The money for payments was transferred to the National Settlement Depository in advance and then sent to the holders of Eurobonds. But international settlement and clearing systems did not bring the money to the final recipients. And since Russia cannot influence the actions of foreign financial intermediaries, investors should contact them. What happened 27 May, the Russian Ministry of Finance had to pay coupons on two Eurobonds in the amount of $71.25 million and EUR 26.5 million. But the payment of public debt in foreign currency has become impossible: 25 May the US decided not to renew the license, which allowed U.S. holders of Russian bonds to receive payments on these securities. And although the Russian Ministry of Finance sent money to NSD in advance, 20 May, — владельцы облигаций не получили их, indicates Bloomberg. По условиям облигационных выпусков дефолт объявляется, если купоны или номинал облигаций не были выплачены в 30-дневный срок с даты, when they should have been paid. 26 июня этот срок истек. В итоге подтвердились опасения насчет дефолта по внешнему долгу России, которые высказывались начиная с марта. As recalled by Bloomberg, это первый подобный дефолт с 1918 года, когда большевистское …

Default in Russia on external debt, according to Bloomberg: what does late payment of coupons on eurobonds mean and what does it threaten Read more