(MENAFN) Many Western media outlets rushed to proclaim that Moscow is today in a state of default on its foreign currency-denominated debt for the first time in more than 10 years, since the grace periods on two Russian Eurobond coupons expired on late Sunday.
Bloomberg described it a as “a grim marker in the country’s rapid transformation into an economic, financial and political outcast,” while the BBC labeled it a “major blow to the nation's prestige.”
The Wall Street Journal even appealed the specter of the “Bolshevik Revolution when Vladimir Lenin, the newly installed communist leader, repudiated the debt of the Russian Empire.”
The bond holders themselves have yet to declare a default or start any proceedings, and the publications noted that the label is “mostly symbolic for now,” while the situation is “expected to pose unique legal challenges,” because “Russia has the money and intent to pay.”
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