War in Ukraine: Russia faces default threat, faces first payment deadline

On Monday, the Ministry of Finance announced that it had sent “Reporter orders payment to the bank in connection with the payment of a total of $ 117.2 million (…)“.

But Finance Minister Anton Silouanov on Monday threatened to repay Russian loans in rubles.

The claims that Russia will not be able to fulfill its public debt obligations do not correspond to reality“, He insisted, accusing the West of wanting to”Causing artificial defect“.

If Russia pays in rubles, as threatened, a 30-day period will begin, after which Russia will be notified that it has not repaid its foreign debt, which, since 1918, has been Lenin’s obligations.

But there is a certain ambiguity around this first deadline. JP Morgan analysts believe these payments should be feasible.

The U.S. Treasury has indicated that U.S. individuals can pay interest until May 25, 2022, on bonds issued before March 1, 2022 by the Central Bank of Russia, the Russian Sovereign Property Fund or the Ministry of Finance.

After this date, they will need approval to continue receiving these payments.

Western sanctions paralyzed the Russian banking and financial sector and caused the ruble to fall. Payments disconnect a state from the default financial markets and affect its revenues for many years.

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