Russian Foreign Debt Default Possible by May 4 2022

Al-Jazeera says that Russia and Russian companies owe about $150bn in foreign-currency debt. According to Globe and Mail, Russia has until May fourth to fix its payment method on foreign bonds otherwise Moodys might consider it a default. Russian bonds are traded at a deep discount, some offering returns of over 100% in 18 months. In recent weeks, Russia has converted to paying interest on foreign in Roubles rather than Dollars, which in their agreement they are supposed to pay in. The government is having trouble paying dollar-denominated bonds ever since the West has cut them off from their reserves (the world’s fourth largest). A default would negatively affect the Rouble and lead to an even more isolated economy.

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