The Russian Federation fails to repay debt - 100 million USD unpaid

[paxmao]

https://www.bbc.com/news/business-61929926

This is a technical default on the debt, although is not the common case - not having enough to pay - apparently is due to sanctions. The Russian Federation does have 100 million to pay, is that the government is unable to get them to the creditors, they argue.

The RF debt has becoming de facto toxic, even if its central bank has enough to pay, it may explode in the hands of whoever owns it or trades it. It is irrelevant if the debt can actually be honoured, only the vultures and bottom feeders will now lend to the RF.

And now.. let the Kremlin trolls break free..

[1714131874]

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[1714131874]

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[Hydrogen]

The $100m interest payment was due on 27 May. Russia says the money was sent to Euroclear, a bank which would then distribute the payment to investors.

But that payment has been stuck there, according to Bloomberg News, and creditors have not received it.

It appears to be a technicality rather than an indication of russia going bankrupt.

(Could this leave russia with no other options aside from making payments in bitcoin.)

I don't think Putin will take this lying down. He will search for alternatives. But we shall see.

Maybe he has no alternatives?

[hatshepsut93]

(Could this leave russia with no other options aside from making payments in bitcoin.)

I don't think Putin will take this lying down. He will search for alternatives. But we shall see.

Maybe he has no alternatives?

They can't pay in Bitcoin, because the contract says the debt must be paid in USD. They tried to pay in ruble, but it's a breach of contract, which means it's a technical default.

Technical default is less severe than normal default, but it's still a problem. It means Russia will have a hard time borrowing money, or will have to do so on bad terms.

[Sithara007]

LOL... had a good laugh at this post. Russia is awash with money and they don't even need to take loans from the international creditors anymore (unlike the case with the US which is bankrupt). Russia is more than willing to make the payments. They made the payment to Euroclear on stipulated time, but it got stuck at the Euroclear bank due to sanctions. Technically, western moonbats can claim it as one of their victories. But their victory is as hollow as the one they are having in Ukraine right now. Since Russia already made the payment to Euroclear, I would not consider this as a default. The money got stolen by Euroclear and will be distributed to the creditors when it is recovered.

[Poker Player]

LOL... had a good laugh at this post.
...
Since Russia already made the payment to Euroclear, I would not consider this as a default. The money got stolen by Euroclear and will be distributed to the creditors when it is recovered.

I have seen this news recently in many media and I had not stopped to look at the detail, but now that I do, I have to agree with Sithara007.

"Russia is believed to have defaulted on its debt for the first time since 1998 after missing a key deadline."

Lol.

"Russia has the money to make a $100m payment, which was due on Sunday, but sanctions made it impossible to get the sum to international creditors."

Come on, the allies are eager to break the news that Russia has defaulted. If we want to call it a default, well, more as a matter of semantics than as a description of reality, because it has nothing to do with Argentina's default in 2001, for example.

Basically I understand it, in a war, propaganda is also important, and this is propaganda on the part of NATO, that since they do not enter into direct conflict to avoid a nuclear war, they make war with things like this.

[Ozero]

LOL... had a good laugh at this post. Russia is awash with money and they don't even need to take loans from the international creditors anymore (unlike the case with the US which is bankrupt). Russia is more than willing to make the payments. They made the payment to Euroclear on stipulated time, but it got stuck at the Euroclear bank due to sanctions. Technically, western moonbats can claim it as one of their victories. But their victory is as hollow as the one they are having in Ukraine right now. Since Russia already made the payment to Euroclear, I would not consider this as a default. The money got stolen by Euroclear and will be distributed to the creditors when it is recovered.

Is Russia swimming in money? Yes, they even refuse to put out their fires because it is already expensive for Russia. So, the Federal Forestry Agency of the Russian Federation stated that part of the forest fires in Yakutia, the Magadan Region and the Chukotka Autonomous Okrug will not be extinguished. The Russian authorities do not give a damn about nature, and, perhaps, massive clearings are attributed to fires. Such a move from a country whose army invades and seizes foreign territories is not surprising. The Russian occupiers are also exporting grain from Ukraine, so this is not the first time they have been given theft for something else. Huge areas will be allowed to burn: in the Chukotka Autonomous Okrug - 22,100 thousand hectares, in the Magadan Region - 2,200 thousand hectares and 5.8 thousand hectares in Yakutia.

Regarding the default. This is how international sanctions work. Even if Russia can pay this amount, but the sanctions have made it such conditions that it cannot do it. Sanctions are designed to make sure that the aggressor does not feel free in this world and put pressure on him in any non-military way so that he stops the war he unleashed in Ukraine.

[davis196]

This is no big deal. I guess that the western propaganda wants to brag about something related to Russia, but nobody cares.
I'm not a fan of Putin and his regime, but in reality, Russia doesn't need loans and not having the opportunity to borrow money on the global financial markets isn't such a big deal for the Putin regime. On the other hand, Ukraine needs loans to refinance it's old debts and the western world will gladly borrow them the money(probably the money will come from the confiscated assets of the Russian central bank, who knows?).
The western media was making a comparison between the current technical default and the 1918 default, which happened after the communist revolution in Russia. Pretty stupid comparison, if you ask me, because the bolsheviks actually didn't want to pay the debts of the Tsarist regime to the western capitalist countries.

[lumbanrang]

Sri Lanka and Russia, these two countries this year failed to pay their debts to creditors, but what is the difference between these two countries? why are creditors going after the Sri Lankan government? whereas creditors are less concerned when Russia defaults on their debts? that's because Russia has plenty of resources at their disposal and money in Chinese banks or creditors are too afraid to protest against Putin.

[Ucy]

I remember some weeks ago Russia attempts to pay her debt was rejected and she ended up paying through an organization that ended up seizing it. I think this is the kind of things you go through when you move against the evil system.  And I won't be surprised if the intention is to make things look like Russia is unable to pay her debt whereas her economy is doing pretty well, better than before.

Do not forget that Russia has over $100 billions in foreign reserve that was stolen/seized in the name of sanctions. That she will recover through force once she is done with special op in Ukraine & the Pro Russia region Donbas

[Sithara007]

Sri Lanka and Russia, these two countries this year failed to pay their debts to creditors, but what is the difference between these two countries? why are creditors going after the Sri Lankan government? whereas creditors are less concerned when Russia defaults on their debts? that's because Russia has plenty of resources at their disposal and money in Chinese banks or creditors are too afraid to protest against Putin.

Sri Lanka is bankrupt and doesn't have any forex reserves. On the other hand, forex reserves of Russia is one of the largest in the world, and they have enough funds to make the interest payments. These two countries can't be compared side by side, as the situation is entirely different. One similarity that I could notice is that the ruling class is extremely corrupt in both the cases. But at least in case of Russia, the rulers have made sure that their corruption won't result in the total bankruptcy of the country.

Is Russia swimming in money? Yes, they even refuse to put out their fires because it is already expensive for Russia. So, the Federal Forestry Agency of the Russian Federation stated that part of the forest fires in Yakutia, the Magadan Region and the Chukotka Autonomous Okrug will not be extinguished. The Russian authorities do not give a damn about nature, and, perhaps, massive clearings are attributed to fires. Such a move from a country whose army invades and seizes foreign territories is not surprising. The Russian occupiers are also exporting grain from Ukraine, so this is not the first time they have been given theft for something else. Huge areas will be allowed to burn: in the Chukotka Autonomous Okrug - 22,100 thousand hectares, in the Magadan Region - 2,200 thousand hectares and 5.8 thousand hectares in Yakutia.

Regarding the default. This is how international sanctions work. Even if Russia can pay this amount, but the sanctions have made it such conditions that it cannot do it. Sanctions are designed to make sure that the aggressor does not feel free in this world and put pressure on him in any non-military way so that he stops the war he unleashed in Ukraine.

LOL.. this is what you got? A few forest fires raging in Siberia is the sign that Russia is bankrupt.

[el kaka22]

I do not think that they care about this that much. These are type of money that they would be able to pay with their eyes closed, there is absolutely nothing wrong with the debt and they could pay that easily in a single signature with a swift move. This is a nation that has thousands of people with 100+ million dollars, and this is also a nation that has much more in the coffers as well, so they can pay this easily.

However, they prefer not to because they basically decided that if the west doesn't want to work with them then they do not want to work with the west as well and they are going to just play the bully like they were expected to.

[paxmao]

The $100m interest payment was due on 27 May. Russia says the money was sent to Euroclear, a bank which would then distribute the payment to investors.

But that payment has been stuck there, according to Bloomberg News, and creditors have not received it.

It appears to be a technicality rather than an indication of russia going bankrupt.

(Could this leave russia with no other options aside from making payments in bitcoin.)

I don't think Putin will take this lying down. He will search for alternatives. But we shall see.

Maybe he has no alternatives?

A said, yes it is technical, the problem being that it is irrelevant why - all that matters is that the creditor is not getting the money they are owed, which means that RF debt is now bad debt.

The RF cannot pay in bitcoin because the conditions of the credits are to be paid in USD. Is like the Oil and Gas contracts: it has to be USD (not roubles, not dirhams, not bitcoin... well you get the idea)

LOL... had a good laugh at this post. Russia is awash with money and they don't even need to take loans from the international creditors anymore (unlike the case with the US which is bankrupt). Russia is more than willing to make the payments. They made the payment to Euroclear on stipulated time, but it got stuck at the Euroclear bank due to sanctions. Technically, western moonbats can claim it as one of their victories. But their victory is as hollow as the one they are having in Ukraine right now. Since Russia already made the payment to Euroclear, I would not consider this as a default. The money got stolen by Euroclear and will be distributed to the creditors when it is recovered.

Well, you know ... if they do not need credit why do they have credits? Unpaid credits.

Glad you keep good spirits, if you live in the RF you are going to need it for quite a few years.

The Russian Federation has reserves and is a exporting country. Yet... many of the reserves are not frozen, sanctions are slow but implacable,...  I guess good humour is going to be really important. And vodka too.

As said, it is technical, but it is failed.

I do not think that they care about this that much. These are type of money that they would be able to pay with their eyes closed, there is absolutely nothing wrong with the debt and they could pay that easily in a single signature with a swift move. This is a nation that has thousands of people with 100+ million dollars, and this is also a nation that has much more in the coffers as well, so they can pay this easily.

However, they prefer not to because they basically decided that if the west doesn't want to work with them then they do not want to work with the west as well and they are going to just play the bully like they were expected to.

Irrelevant. As a lender, all I care is about the payments and these are not coming. I have know a few people that drove around in Mercedes and did not pay their debts.

This is no big deal. I guess that the western propaganda wants to brag about something related to Russia, but nobody cares.
I'm not a fan of Putin and his regime, but in reality, Russia doesn't need loans and not having the opportunity to borrow money on the global financial markets isn't such a big deal for the Putin regime. On the other hand, Ukraine needs loans to refinance it's old debts and the western world will gladly borrow them the money(probably the money will come from the confiscated assets of the Russian central bank, who knows?).
The western media was making a comparison between the current technical default and the 1918 default, which happened after the communist revolution in Russia. Pretty stupid comparison, if you ask me, because the bolsheviks actually didn't want to pay the debts of the Tsarist regime to the western capitalist countries.

The west has not confiscated the RF reserves. They are simply frozen to avoid these being used to pay for the killing of Ukrainians. It may come to actually starting to confiscate if this war drags on, but for now, very few assets have been confiscated as such.

[be.open]

https://www.bbc.com/news/business-61929926

This is a technical default on the debt, although is not the common case - not having enough to pay - apparently is due to sanctions. The Russian Federation does have 100 million to pay, is that the government is unable to get them to the creditors, they argue.

The RF debt has becoming de facto toxic, even if its central bank has enough to pay, it may explode in the hands of whoever owns it or trades it. It is irrelevant if the debt can actually be honoured, only the vultures and bottom feeders will now lend to the RF.

And now.. let the Kremlin trolls break free..

There is no default, not even a technical one. The statements of the rating agencies in this case are an empty phrase, for a default a quorum of investors is needed who could not get their money, but there is none.

[paxmao]

https://www.bbc.com/news/business-61929926

This is a technical default on the debt, although is not the common case - not having enough to pay - apparently is due to sanctions. The Russian Federation does have 100 million to pay, is that the government is unable to get them to the creditors, they argue.

The RF debt has becoming de facto toxic, even if its central bank has enough to pay, it may explode in the hands of whoever owns it or trades it. It is irrelevant if the debt can actually be honoured, only the vultures and bottom feeders will now lend to the RF.

And now.. let the Kremlin trolls break free..

There is no default, not even a technical one. The statements of the rating agencies in this case are an empty phrase, for a default a quorum of investors is needed who could not get their money, but there is none.

Let's say that they are in DT1 and your Ministry of Creative Financing has a T:-3 -  It does not matter if it is technical or not, and it does not matter if you deny or not. The largest investment institutions in the world have a mandate that uses those ratings and now they will sell all the RF debt and will not buy any more. It is exactly the same as when you tell people that "a western missile system has been destroyed", the missiles are still there killing the young RF soldiers.

The effect of this is clear: if the RF wants to pay anything in Euros or USD (sorry, most countries that have stuff worth selling do not accept Roubles), it cannot take any debt in US or EURO, it will have to come directly from the reserves. That is, anything that has not been frozen yet.

Just in case you feel like denying...

https://edition.cnn.com/2022/06/27/economy/russia-debt-default-sanctions/index.html

West pushes Russia into its first foreign debt default since 1918

https://www.ft.com/content/28817b4e-427c-44c1-88b4-38b79e3da7f0

Russia set for first debt default since 1998 as payment deadline passes

https://www.bloomberg.com/news/articles/2022-06-26/russia-defaults-on-foreign-debt-for-first-time-since-1918

Russia Slips Into Historic Default as Sanctions Muddy Next Steps
Grace periods on two eurobond coupons expired on Sunday

https://www.themoscowtimes.com/2022/06/28/moodys-declares-russia-in-default-a78127

Moody’s Declares Russia in Default

https://www.marketplace.org/2022/06/27/as-russia-defaults-on-its-foreign-debt-sanctions-blitz-batters-economy/

As Russia defaults on its foreign debt, sanctions blitz batters economy

https://www.abc.net.au/news/2022-06-28/why-has-russia-defaulted-on-its-foreign-debt/101190578

Why has Russia defaulted on its foreign debt? And what will the impact be?

[be.open]

The largest investment institutions in the world have a mandate that uses those ratings and now they will sell all the RF debt and will not buy any more.

How do you imagine it, to whom foreign investors can sell Russian bonds now, who will buy them? With its destructive actions, the West itself robs its investors, preventing them from making a profit that Russia is ready to pay. Russia has all the payments in its hands, the money for the coupons has been transferred, both in dollars and in rubles with the possibility of exchanging them for dollars. Further it is the problem of the West how to deal with their investors who want to return their money. Russia has fulfilled its obligations in full.

All this hysteria around a technical default was created with one goal - to find at least some legal hooks for withdrawing the frozen funds of the Central Bank of Russia. Well, good luck.

[paxmao]

The largest investment institutions in the world have a mandate that uses those ratings and now they will sell all the RF debt and will not buy any more.

How do you imagine it, to whom foreign investors can sell Russian bonds now, who will buy them? With its destructive actions, the West itself robs its investors, preventing them from making a profit that Russia is ready to pay. Russia has all the payments in its hands, the money for the coupons has been transferred, both in dollars and in rubles with the possibility of exchanging them for dollars. Further it is the problem of the West how to deal with their investors who want to return their money. Russia has fulfilled its obligations in full.

All this hysteria around a technical default was created with one goal - to find at least some legal hooks for withdrawing the frozen funds of the Central Bank of Russia. Well, good luck.

Vultures and bottom feeders? You Chinese friends (LOL)? My honest answer is I could not care less, but I am sure it is going to be for pennies on the dollar. Investors in the west know what it means to buy RF debt, as they know what it means to buy Chinese Companies "shares" or invest in West Africa - risk is there, if you do not like it, do not take it.

It is curious how expensive wars tend to be... and when you have to pay for them with real money... ouch!

[NotATether]

Is Russia swimming in money? Yes, they even refuse to put out their fires because it is already expensive for Russia. So, the Federal Forestry Agency of the Russian Federation stated that part of the forest fires in Yakutia, the Magadan Region and the Chukotka Autonomous Okrug will not be extinguished. The Russian authorities do not give a damn about nature, and, perhaps, massive clearings are attributed to fires.

I can't imagine that they would waste all that wood and not even export it, with the sanctions that they have on them.

What if the the areas have Russian settlements in them, the agency will just ignore it too?

[zasad@]

Russia is the champion of the planet in terms of the sanctions imposed against it.
This whole situation shows the failure of the global banking system and suggests that it is time to change it. Therefore, I have no doubt that the future will be with cryptocurrency technologies.

[Ucy]

It seems a bank in Russia is about to lend a country about $500m. Russia should be able to take part of that if she is in dire need of money, then she can pay back later.
Hope you understand the irony here.

[goldkingcoiner]

It is curious how expensive wars tend to be... and when you have to pay for them with real money... ouch!

I have no idea but if it was anything similiar to the Civilisation games, then a country would need to pay heavily for war. But I have nothing realistic to compare it to. I doubt Russia can keep up their superficial ruble price up for very long as their reserves will, at some point run out and nobody big but China and India are willing to do business with them. And even then, Russia is being financially and politically exploited as much as possible while India and China are following sanction guidelines.

Lets see how things look after a year or two of war. I doubt it will end anytime soon.