The international rating agency Moody’s has announced that Belarus has defaulted on foreign debt. This is stated on the website of the house.
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 points out, the repayment of foreign exchange debt in 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.
On June 22, Russian President Vladimir Putin signed a decree establishing a new temporary procedure for eurobond payments in rubles. Moody’s said on June 28 that Russia has defaulted on its Eurobonds. According to the agency, holders of Russia’s sovereign debt did not receive coupon payments on two $100 million Eurobonds until the end of the 30-day grace period on June 27.
SOURCE: AMPE
Source: Capital
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