Russia just defaulted on its sovereign debt. Last time was in 1917.
Cough up the dollars, Putin!
Posted on 04/06/2022 8:17:14 AM PDT by marcusmaximus
Russia on Wednesday said it had transferred $650 million worth of bond payments in rubles, raising fresh questions about whether the country is heading for an official default.
The move came after the US on Monday banned Russia from making dollar debt payments from accounts at American financial institutions.
Russia's Finance Ministry on Wednesday confirmed foreign banks had refused to process the $649.2 million payment in dollars, which were due Monday.
It said it had instead sent the money to the country's National Settlement Depository in rubles. The Ministry said it believes its obligations "have been fulfilled in full."
However, ratings agencies have said they would consider Russia to have technically defaulted if it resorted to paying dollar-denominated debts in rubles.
Credit ratings agency Fitch said in March that a "forced redenomination of payment obligations" would indicate "that a default or default-like process has begun." Fitch has since withdrawn all Russian ratings.
Although some of Russia's foreign currency bonds specify that investors can be paid back in rubles in certain circumstances, the 2022 and 2042 bonds are not amongst them, according to JPMorgan.
Analysts are highly doubtful about whether foreign holders of Russian dollar-denominated bonds would accept rubles, given that they signed up to be paid in dollars
(Excerpt) Read more at markets.businessinsider.com ...
Russia just defaulted on its sovereign debt. Last time was in 1917.
Cough up the dollars, Putin!
What default? It is a propaganda aimed at 60 IQ neocon idiots.
They have the money and the will to pay, except the US Treasury is blocking transaction.
So we’ll accept rubles?
Seems completely reasonable to me. These mental midgets in our government have no idea about the consequences of their policies.
It’s a default.
He paid in trash rubles instead of dollars.
Is it a default if the payment is refused or if access to the funds are blocked? It looks like Russia wants to make the payment, but the US will not allow it.
Nope it isn’t Although I agree in part that paying at all was stupid, should have redirected creditors to the US Treasury.
CUSTOMER: “I didn’t miss the payments. You just refused to accept checks written from my own checking account at YOUR local branch as payment.”
BANK: “It doesn’t matter. It’s still a default.”
CUSTOMER: “OK, then go ‘eff yourself and stick your auto loan up your @ss. I’ll keep sending you my checks every month, and I will have the car booby-trapped to keep you from repossessing it.”
https://www.marketwatch.com/story/u-s-treasurys-market-continues-to-be-plagued-with-illiquidity-as-feds-rate-hike-cycle-begins-11648226371?siteid=yhoof2
They turn dollar into a monopoly money.
LOL. Precisely what happened here.
Here’s my payment in USD.
NO! we won’t allow you to pay in USD.
OK, here’s my payment in Rubles
NO! We don’t accept rubles
OK, so then what?
You’re in default!
I understand why the local FR illiterates are peddling it as a default, but Psaki telling the same is quite ridiculous. Top-down idiocy.
US blocked their payments to screw investors. Biden policy to blame. I won’t be surprised if this turns out badly for all involved.
It’s like when a sanctioned Mexican drug lord tries to pay for his U.S. girlfriend’s Mercedes with pesos.
Actually, its "force majeure"
Banks and bondholders should have standing to sue the US Fed.gov.
Well, the problem for Russia would be getting new creditors but since it’s just a technical default I think that is not going to be thr case. Also, I don’t think Russia’s economy is based entirely on debt like the U.s where everything is debt swaps, derivatives and so on. Russia has resources that are necessary no matter which monetary system you choose (which is why people like gold by the way). To celebrate this nonsense is silly as in reality the creditors are probably going to hurt more. Of course the so called elites don’t care since they don’t neef to rely on 401ks to live and they never have to go grocery shopping. Markets are loving the default (not really). This is a lose, lose. Thr “powers” that be are very poor leaders.
Ruble is looking increasingly more attractive, so maybe the bond holders are better to buy the ruble bonds.
Do you even believe the nonsense you're posting?
***They have the money and the will to pay, except the US Treasury is blocking transaction.***
which qualifies as at most a technical default, or force major.
The only thing I cannot understand (and I think nobody else does) is why Putin even bothers with this. Consequences are immaterial in the current situation.
....during the years long demise, slide, crash of the Venezuelan bolivar it was often said that it would take a wheelbarrow full of bolivars to go to the store and buy a loaf of bread.
I think the bond companies would take roubles if Russia took them to a third party and cashed them in for enough CASH DOLLARS to pay the bond companies.
The trouble is finding a third party to do that because before he could cash his wheelbarrow full of roubles in they might fall another 10% costing him 65 million dollars.
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