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Already Gone! Russia Defaults on Foreign Debt for First Time Since 1918 (Europe Sov Yields UP 10+ BPS)
Confounded Interest ^ | 06/27/2022 | Anthony B. Sanders

Posted on 06/27/2022 5:00:12 AM PDT by Browns Ultra Fan

click here to read article


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To: WMarshal

Agreed! How can it be a real default when western countries are preventing payment and in some cases refusing to accept payment?


41 posted on 06/27/2022 6:45:37 AM PDT by Cincinnatus.45-70 (What do DemocRats enjoy more than a truckload of dead babies? Unloading them with a pitchfork!)
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To: NorseViking

I think it is going to be an interesting economic period over the next few years in Russia. Lots of opportunities to financially benefit from the inward restructuring of the economy. Businesses to take over or new business to start to address what the importers abandoned.

Too bad Russia doesn’t allow easy entry and has a language that requires an ability to input every letter in the alphabet to form a slavic word...or you would likely be seeing a lot of Americans deciding it’s time to move on...:-)


42 posted on 06/27/2022 6:54:44 AM PDT by Cathi
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To: Browns Ultra Fan

The default is also mostly symbolic for now.

Well that proves democrats have infiltrated Russia.


43 posted on 06/27/2022 7:43:14 AM PDT by Vaduz ( )
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To: Cathi

Not as hard as you think it is.


44 posted on 06/27/2022 8:06:36 AM PDT by NorseViking
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To: NorseViking

Which? The language or entry....:-)


45 posted on 06/27/2022 8:13:24 AM PDT by Cathi
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To: Cathi

I know Americans here who aren’t very fluent:)


46 posted on 06/27/2022 8:15:12 AM PDT by NorseViking
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To: Browns Ultra Fan

Russia could solve this problem instantly by the simple expedient of ending its immoral war of aggression against Ukraine.


47 posted on 06/27/2022 8:16:28 AM PDT by NorthMountain (... the right of the peopIe to keep and bear arms shall not be infringed)
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To: NorseViking
My 10Y Russian bonds are in a green at +0,37% or about 30% up since February, not counting coupons. It seems like investors don’t trust the article.

That, of course, assumes that you'll get paid.

48 posted on 06/27/2022 8:35:24 AM PDT by Hamiltonian
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To: jdsteel

This administration is a dumpster fire. I imagine China will come through. The west is doing everything to provoke nuclear war.

Interesting that the usual antiwar folks are so quiet.

Powers that be want death.


49 posted on 06/27/2022 8:54:02 AM PDT by Chickensoup ( Leftists totalitarian fascists are eradicating conservatives)
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To: mewzilla
Re: "What is foreign sovereign debt?"

Russian government debt that must be paid back in the local currency.

For some reason I do not understand, Russia apparently keeps almost all of its foreign currency reserves in foreign banks. They have substantial reserves because they sell oil, natural gas, fertilizer, and grain all over the world.

Most of those reserves are in Euros and USA Dollars, which have been frozen by the EU and the USA.

Russia could sell Rubles for Euros and Dollars, but they have refused to do that.

For a brief period after the Ukraine War started, the value of the Ruble crashed. However, a month ago, the Ruble traded for more than it did before the War started.

I believe today the Ruble is at a 5 year high, but I always get confused when I look at currency charts, so that might be wrong.

50 posted on 06/27/2022 8:55:48 AM PDT by zeestephen
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To: Browns Ultra Fan
Anthony B. Sanders is living in a fantasy world.

A lot of people are, these days.

It's all fun and games till you get the January 2023 natgas bill...

51 posted on 06/27/2022 9:01:38 AM PDT by kiryandil (China Joe and Paycheck Hunter - the Chink in America's defenses)
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To: Hamiltonian

Keep the account outside the US jurisdiction and no problem with payments. I have no problem in getting coupons in rubles because ruble is at 7 year highs.


52 posted on 06/27/2022 9:07:08 AM PDT by NorseViking
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To: NorseViking
Keep the account outside the US jurisdiction and no problem with payments.

Until the Kremlin decides that you are too far down on the Creditors List.

53 posted on 06/27/2022 9:28:39 AM PDT by Hamiltonian
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To: Hamiltonian

Wrong country. Russian treasury is known as a particularly meticulous institution regarding its ogligations.


54 posted on 06/27/2022 9:40:21 AM PDT by NorseViking
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To: silverleaf

Nah, they have plenty, they have markets, they’re selling just fine.

Don’t believe what you read from any media at this point.


55 posted on 06/27/2022 11:10:57 AM PDT by Bulwyf
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To: Bulwyf

*** Russia has the money. This is an attempt to goad them further. ***

Yeah, all this Crowing by the West whose fault it is. If I was Russia, I would be pondering how to make the West eat the Crow.


56 posted on 06/27/2022 11:48:37 AM PDT by sockmonkey (Conservative. Not a Neocon.)
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To: Bulwyf

Russia paid

https://interfax.com/newsroom/top-stories/80609/

MOSCOW. June 24 (Interfax) - National Settlement Depository (NSD), the paying agent for Russian sovereign Eurobonds, has received 8.5 billion rubles or $159.4 million equivalent in order payment of coupon interest on the country’s 2028 Eurobonds, the Finance Ministry said.
The ministry said it had honored obligations to service the sovereign bonds in full.

The ministry said on June 23 that it had has transferred rubles to the NSD in payment of coupons on the country’s 2027 and 2047 Eurobonds as part of the new arrangement for servicing sovereign external debt, as approved by a presidential decree of June 22.

The new form of payment came after the ‘west’ rejected to receive the money in Euros. As the NYT writes:

Russia is rejecting the default declaration, on the grounds that it has made efforts to pay. Dmitri S. Peskov, the Kremlin’s spokesman, told reporters on Monday that the statements about default were “absolutely illegal.”
“The fact that Euroclear withheld this money, did not transfer it to the recipients, it is not our problem,” Mr. Peskov said. “In other words, there are no grounds to call this situation a default.”

The bond investors can easily get their money in the currency they want. They will have to open two accounts with Gazprombank in Zurich, one in rubles and one in euros. They then can ask Russia’s National Settlement Depository to send their rubles to their rubles account at Gazprombank which will happily buy those rubles and move the corresponding euro value into the investor’s euro account.

That is simply the reverse of the process European buyers use to pay for Russian gas in rubles.

Source: https://www.moonofalabama.org/2022/06/newsbits-on-ukraine-lysichansk-cauldron-civilian-damage-reserve-troops-russian-default.html#more


57 posted on 06/27/2022 12:41:09 PM PDT by silverleaf (“Freedom ultimately means the right of other people to do things that you disagree with”. T. Sowell )
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To: sockmonkey

We might not need to wait long.


58 posted on 06/27/2022 1:46:33 PM PDT by Bulwyf
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To: NorseViking
You're right, there is no reason to doubt the full faith and credit of primitive degenerates that launch expensive munitions from 1980's platforms into shopping malls.

Don't be concerned. After they default on their bond payments to you, the party will recognize your service as a valued apparatchick- with an offer of your own personal dacha in the suburbs of Noril'sk.

59 posted on 06/27/2022 4:48:44 PM PDT by Hamiltonian
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To: Hamiltonian

Another guy funneling propaganda, isn’t you? Your country has a history of stealing assets, Russian investors are safe so far.
As for a shopping mall how do you know it is not a legit military target? I didn’t see a lot of cars on the parking lot and the number of two killed is a poor evidence of ‘bombing a busy mall’. It blew really good hence most likely an ammunition storage.


60 posted on 06/27/2022 5:57:56 PM PDT by NorseViking
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