Belarus said today it has the necessary funds to make its euro bond payments, but sanctions have prevented them from being made, Reuters reported.
“There are funds. But we cannot carry out transactions because of the relevant actions of international financial institutions,” Prime Minister Roman Golovchenko said in a video released by the government’s press service.
Last Friday, the international rating agency Moody’s announced that Belarus had defaulted on foreign debt.
On July 13, the grace period during which Belarus had to pay the amount of $22.9 million for the ten-year Belarus-27 Eurobonds ended. The Ministry of Finance of Belarus made the payment in national currency, due to which bondholders could not receive payments.
As Moody’s had emphasized, the repayment of foreign exchange debt with Belarusian rubles constitutes bankruptcy.
Belarus, following Russia, decided to pay its foreign debt in national currency at the end of July. The government of Belarus described its decision as a forced measure, since the participants of the system cannot fully and on time guarantee the payment of payments to all holders of Eurobonds.
Source: Capital
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