S&P puts Russia in ‘selective bankruptcy’

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Credit rating agency S&P Global has put Russia on “selective bankruptcy” for its external debt, as the country offered rubles to pay two dollar-denominated bonds that expired on April 4.

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The house said in a statement that payment in rubles instead of dollars was tantamount to “selective default”, as reported by CNN.

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What is selective bankruptcy? According to S&P, selective bankruptcy is declared when an entity has defaulted on a specific obligation but not all of its debt.

Last week, the US Treasury Department barred Russia from gaining access to its foreign exchange reserves in US banks, forcing Moscow to offer to pay its debts in rubles, diverting foreign exchange earnings that would otherwise have been used to support the war. of the campaign, or not pay at all.

The US Treasury Department allowed Russia to use some of its pledged assets to repay some investors in dollars by then.

Regarding the possibility of Russia going bankrupt, the Kremlin spokesman noted that his country has the resources to repay its debt and there is no objective reason to declare bankruptcy.

“The only thing that can happen is a technical character, a deliberately created bankruptcy,” D. Peshkov stressed.

Russia to sue: Speaking to pro-government newspaper Izvestia on Monday, Russian Finance Minister Anton Siluanov said Russia would sue over the issue.

“We will sue because we have taken all the necessary steps for the investors to receive their payments. We will present in court evidence of our payments, to confirm our efforts to pay in rubles, just as we did in foreign currency. it will be a simple process “.

Source: Capital

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