The credit rating agency Moody’s now believes that the Russian Federation has declared a moratorium on payments on its external public debt.
The house explained in a statement that it ended up in this crisis because Moscow did not repay interest on two government bonds, after the expiration of the thirty-day grace period yesterday Monday.
Russia’s previous debt arrears date back to the last century, when Moscow failed to repay its international creditors in 1918 after the Bolshevik revolution.
Russia’s most recent default was in 1998, when oil prices fell and the ruble collapsed, but only Russia’s domestic creditors were affected.
Remarkably, the declaration of suspension of payments this time is not due to a lack of cash from the Russian state – Moscow’s coffers are full, thanks to high energy prices – but to technical issues related to the processing of payments, due to Western sanctions in Russia. make their execution impossible.
Moscow has made normal payments and the fact that they are being blocked due to Western sanctions “is not our problem”, Kremlin spokesman Dmitry Peshkov said yesterday, according to the Interfax news agency. For the Russian government, this is an “artificial” suspension of payments.
SOURCE: AMPE
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
