The grace period during which Russia had to pay the next interest on government bonds expired on Monday. So Russia is on the verge of an official default. But what does this mean?
For months there were fears that Russia could become insolvent at any moment. With Monday today will be so far. According to two insiders, many Taiwanese investors have yet to receive interest payments on Russian government bonds. Reuters I reported Monday morning. This means that Russia could officially face default. But what will happen next?
The legal question remained open as to whether Moscow had until Monday evening to avert this situation.
If it comes to bankruptcy, it will be the first since the Bolshevik Revolution more than 100 years ago. It’s not a huge amount. There is only $100 million in interest accrued on government bonds issued abroad in dollars and euros. Payment was due on May 27. The planned grace period expired on Sunday – or Monday. According to the Moscow Ministry of Finance, Russia made bond payments in euros and dollars to the NSD Central Securities Depository. This, of course, does not mean that the money ends up with international owners.
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