Moody's Declares Russia in Default | MENAFN.COM

Tuesday, 09 August 2022 10:11 GMT

Moody's Declares Russia in Default


(MENAFN) Global rating agency Moody's declared that Russia has violated the foreign debts loans valued at USD100 million.

As mentioned by a Moody's announcement on late Monday, owners of Russia's independent debt had not received payments by the time.

The agency stated 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."

Russia has declared that it is going to pay external debts in rubles.

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.

Adding "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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