Posted on 03/15/2022 5:40:16 PM PDT by TigerLikesRoosterNew
As Russia risks default, country sends order for coupon payments
March 14 (Reuters) - The Russian Finance Ministry said on Monday it has sent an order to a correspondent bank for the payment of coupons on eurobonds amounting to $117.2 million, a signal to markets waiting to see whether Russia will default on its sovereign debt.
The eurobonds in question, maturing in 2023 and 2043 , were both last trading at 20 cents on the dollar or lower and are among the first to have scheduled payments after Russia was hit by sanctions related to its invasion of Ukraine.
The restrictions meant it was unclear whether Russia would be able, or willing, to make the payments.
"This week, on Wednesday, we are due to repay another Eurobond coupon," Finance Minister Anton Siluanov told state TV on Monday. "And today, on Monday, we prepared a payment document in foreign currency and will give an order to foreign banks to execute this payment. We will keep an eye on this payment document and monitor how banks will execute our (payment) orders."
(Excerpt) Read more at reuters.com ...
More than I would have done in that scenario.
Did they pay?
If Russia defaults, do banks go under?
Russia IMHO will not pay one fiat penny to the Deep State Cabal.
They are almost or perhaps completely off SWIFT, they have been stacking Gold for this day (tomorrow).
The FED is coming down, and this is one more nail in the FED coffin.
“Did they pay?”
They authorized the payment (like writing a check), but we have yet to see if the banks holding their funds will honor that check (because the accounts are frozen by sanctions).
Even if the payment does not go through, there is a 30 day grace period before actual default is declared. Although there is that grace period, markets will react on the information of what happens tomorrow.
Russia has said it will pay in rubles if the foreign currency transactions do no go through. The transactions are not expected to go through, and creditors are probably under pressure not to accept rubles, to force them toward default.
Russia had an excellent financial record of soundness, compared to most Countries. This would mark a dramatic shift from the top tier to the bottom tier of credit worthiness.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.