Posted on 03/16/2022 9:15:18 AM PDT by marcusmaximus
Russian Finance Minister Anton Siluanov said Wednesday it is up to the U.S. to decide whether crucial interest payments on two dollar-denominated eurobonds go through, ratcheting up fears of Moscow’s first foreign currency debt default in over a century.
“The possibility or impossibility of fulfilling our obligations in foreign currency does not depend on us, we have the money, we paid the payment, now the ball is on the side, first of all, of the American authorities,” Siluanov said in an interview with RT Arabic, according to Russian news agency RIA.
“The Russian Federation has the necessary money in foreign currency accounts, it is possible to pay in ruble settlements.”
Siluanov claimed Russia had the necessary funds to fulfill its obligations and pay $117 million in interest on two sovereign eurobonds due on Wednesday. However, he said the U.S. should first clarify whether the settlements are possible from Russian foreign currency accounts.
CNBC has contacted the U.S. Treasury Department’s Office of Foreign Assets Control, which administers sanctions, for comment. It was not immediately available to respond.
(Excerpt) Read more at cnbc.com ...
Yup. Remember, if you owe the bank $10,000 and cannot pay, then you have a problem. If you owe the bank $100,000,000 and cannot pay, then the bank has a problem.
A Russian default does not really hurt Russia. It badly damages lenders and investors in the West.
You cannot “cancel” Russia.
It has large gold reserves.
It produces more grain than it needs to eat.
It produces more nitrogen fertilizer than it needs.
It produces more oil and natural gas than it needs.
It produces strategic metals in quantities allowing export.
Russia does not actually NEED U.S. currency which is headed downward to worthless value.
Russia can buy manufactured items from China using Chinese money.
Putin is asking the bank if they want to be repaid or not.
That does not sound like “hurting” to me.
The Western approach is like protesting the school bully by shooting yourself in the knee.
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