Russian government warned it might pay foreign debt obligations in rubles. Credit rating agencies say a default is imminent

Sharing is Caring!

Russia is teetering on the edge of a possible sovereign debt default, and the first sign could come as soon as Wednesday.

The Russian government owes about $40 billion in debt denominated in U.S. dollars and euros, and half of those bonds are owned by foreign investors. And Russian corporations have racked up approximately $100 billion in foreign currency debt, JPMorgan estimates.

On Wednesday, $117 million in interest payments on dollar-denominated government debt are due.

But Russia is increasingly isolated from global financial markets, and investors are losing hope that they will see their money. As the government strives to protect what’s left of its access to foreign currency, it has suggested it would pay its dollar- or euro-denominated debt obligations in rubles instead. That has prompted credit rating agencies to warn of an imminent default.

See also  Now We Are Being Warned That Shortages Of Diesel Fuel And Electricity Are Coming In The Months Ahead
Help Support Independent Media, Please Donate or Subscribe:
See also  Elon Musk: "If people want less free speech, they will ask government to pass laws to that effect." Is he encouraging them to do this?

Views: 0

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.