Moody's: Russia defaults on its worldwide debts| MENAFN.COM

Monday, 08 August 2022 04:03 GMT

Moody's: Russia defaults on its worldwide debts

(MENAFN) Russia has defaulted on international obligations of USD100 million, according to global rating agency Moody's.

The holders of Russia's national debt have not yet received payments, according to a Moody's declaration late on Monday.

The agency also mentioned that "the failure of these payments to reach bondholders follows the expiry of the general license of the United States' Office of Foreign Assets Control on 25 May, which, until then, had allowed US financial institutions involved in the payments to continue to process them." Moreover, the payment of its international loans is going to be made in rubles, according to Russia.

Moody's stated that "we have held the view that we would likely treat payments in rubles as a default for bonds that do not allow for such redenomination in the contractual terms.”

It added, "Eurobonds issued by Russia after 2018 allow under certain conditions for repayments to be made in rubles. However, eurobonds issued before 2018 either do not contain this alternative currency clause or allow for repayments to be made only in other hard currencies."


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