The country has exceeded the grace period to pay nearly 100 million dollars as interest on its sovereign debt
Russia has entered into suspension of payments for the first time in a hundred years by exceeding the grace period for the payment of nearly 100 million dollars as interest on its sovereign debtthe Bloomberg agency reported on Monday.
The 30 days of grace for Russia’s creditors to receive payment expired this Sunday. According to Bloomberg, this situation is considered an event of suspension of payments and it is the “culmination of increasingly severe Western sanctions – against Russia for its “special military operation” in Ukraine – that have blocked the means of payment to foreign creditors”. “It is a grim sign of the country’s rapid conversion (Russia) an economic, financial and political pariah,” the agency said.
“symbolic character”
At the same time, he stressed that, for the time being, taking into account the damage already suffered by the Russian economy and market, the suspension of payments currently has a “rather symbolic character And it doesn’t mean much to the Russians.”
In Russiathe Ministry of Finance declared on Thursday that he fully complied with the service obligations of the state debt of the Russian Federation and the portfolio reported that it entered 12.51 billion rublesequivalent to $234.9 millionto the national depository that acts as payment agent for the eurobonds.
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The subscription in rubles was carried out by virtue of a decree of the Russian president, Vladimir Putin, according to which “the obligations towards the eurobonds of the Russian Federation are recognized as fulfilled if they are made in rubles for an amount equivalent to the value of the obligations in foreign currency“.
Russia accuses West of preventing the payment of its debt with measures such as the blocking of its national depositary by the European Union and the non-renewal by the United States of the license that allowed Moscow temporarily pay off your debt in dollars.