Posted on 03/15/2022 6:14:54 AM PDT by marcusmaximus
Russia is due to make two interest payments on its dollar bonds on Wednesday, but it is unclear whether western investors will actually receive their cash, potentially lining up a uniquely messy government debt default.
Russia’s first default since 1998, and its first default on foreign-currency debt since the Russian Revolution, would complete a staggering turnround.
Before it invaded Ukraine, Russia was considered one of the most creditworthy countries in the world, with its low debt levels and vast oil and gas exports.
But unprecedented western sanctions aimed at cutting off Russia from the global financial system have sent the country’s markets into freefall and complicated the process of servicing debts.
Will Moscow pay?
Russia is scheduled to hand investors a total of $117mn in interest payments on two of its bonds. It has a standard 30-day grace period in which to pay up. If it does not, that would constitute a default.
(Excerpt) Read more at ft.com ...
Russia’s got a lot of gold to trade...
I would never buy Russian bonds to start with. Ha Ha...
But, the bonds state how payment can be made. If it is a dollar denominated bond, the payment is usually defined in dollars. This is where it gets sketchy.
My guess is the Russians will state that the payments, in Rubles, will be placed in escrow accounts in Mother Russia—available to the bearers on demand. Of course, this means they are pretty much useless.
BUT...if they pay this way they can tell the international banking community that they DID pay the interest, on time and in full. And the International Banking Community will have to make a choice: Either go along with the charade...or start default proceedings.
My guess is they will go along with the BS, at least for a couple rounds of payments.
I am not sure how JP Morgan would start foreclosure on a country. Nor do I think we will see JPM or the other banks admit they are losing many billions in defaulted assets.
It goes back to the old saying about if you owe the bank $100,000—they own you. But if you owe the bank $100 million...you own them.
Oh the imbeciles have indeed fallen for this invasion and it’s cover story. And Biden, Nuland, Vindman, Obama, Soros, Hillary and biolab Fauci, Zuckerberg and the entire MSM are laughing at how easy it is to lead old cold warriors around by the nose.
Not as much as people think. A lot of their gold is on deposit with foreign reserve banks. It is the basis for a lot of credit and international balance.
That said, because of the sanctions a lot of the gold that Russia owns is frozen. We haven’t confiscated it...its merely not available to them.
Obviously Russia has vast gold reserves in the ground and in their state vaults. But not the hundreds of billions that is bandied about.
By the way, when calling people imbeciles, it’s very important to spell it correctly! Lol
I have no patriotic duty to pay more money to support the Ukraine.
While I have sympathy for their people who will have their lives ruined forever. I have zero sympathy for their government. The same government who was paying money to Biden’s family.
Personally, I am surprised Putin went beyond taking over the majority of the country. I figured he would take over the eastern provinces and call it good.
There is so much propaganda being thrown around the internet. I do not know what to believe anymore.
The evil scumbag Zelensky bombed the people of Eastern Ukraine for 8 years.
Just because they are using it for their bad purposes DOES NOT MAGICALLY make Putin and Russia the good guys. Why do so many struggle being able to “get it” that there may be more than one plot going on? I never seen so much faulty “IF A THEN B” thinking.
Biden and Kamala and all of the media keep saying it’s our patriotic duty. So I was laughing at the banks freaking out when it’s their turn.
And I kind of expected that limited move too. But i guess in for a penny, in for a pound! If he grabbed those two and called it a day, Nazi artillery would never cease. So you need more of a buffer. And then it occurs to you to destroy all their military and end it once and for all.
Also a good pimp slap to DC, NATO and the globalists. Also a year ago Zelensky was talking about a nuke. So might as well go for broke.
Nevertheless, look who you are signed with.
I’m signed with the Ukrainian people.
Spoken like a true embicile lol.
And you must think Biden, Nuland, Vindman, Obama, Soros, Hillary and biolab Fauci, Zuckerberg and the entire MSM suddenly decided to be great patriots and all. They are standing beside you.
Exactly. They keep saying Russia may default. But Russia is willing to pay. However, the banks/governments have frozen all their means of transferring money to them.
It's like if you were wanting to payoff your bank-issued credit card, but the bank has frozen your checking and savings accounts, so you can't electronically debit it, or even withdraw cash to give that to them.
This is not in any way a loan default. It's money hostage by the banking industry with governments as its co-conspirators. You can argue it's justified. But to call it a loan default is incorrect.
“....The same government who was paying money to Biden’s family....”
You really ought to blame Amerian politicians that put themselves up for sale!
I don’t blame weak countries from doing whatever they have to do including bribing Amreican politicians to survive. I actually don’t even blame stronger countries like China for doing it. Its a way of gaining advanatge and has been done for 1000s & 1000s of years. (It is a form of Kipling’s “Great Game”!) It’s Amrican politicians & their strap-hangers who put themselves out there like hookers on a street corner! Lets blame who’s at fault.
Countries do what they do to gain advantage\survive vis-a-vis other countries. Bribes are simply a tool. It takes two for a bribe to work - the “giver” and the “reciever”.
You’re giving the reciever too much of a pass!
Technically who is truly at fault? It’s the American voter who insists on putting these people back in office. Thus enabling life long careers of getting “baksheesh” for the politicians, their families and their strap-hangers!
Don’t forget there’s plenty of domestic “baksheesh” going on too!
Term limits! It doesn’t eliminate it, That can never happen. Term limits just makes it more complicated and expensive for those doing the bribing.
Didn’t your mommy ever tell you, two wrongs don’t make a right? Why is that simple concept beyond your understanding?
If your entire cast of characters said “breathing is good”, you’d start holding your breath and be manipulated like some contray child. Good god think for yourself.
Nice homage to Russian-esque disregard for recent history; in this case 1998, when Russia defaulted on domesic debt.
Defaulting on debt payments just gives Russia’s creditors an excuse to make legal claims on Russia’s frozen foreign reserves.
Could be very interesting. What if nothing further bad happens to Russia?
What about all the debt US owes to the CCP companies? If nothing bad happens, how desperate might the CCP get about allowing any non-bought US Pres into office?
They aren’t giving those assets back anyway. Everybody knows it. At least not until there’s a Soros WEF DC approved government in Moscow.
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