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Russia has defaulted on its foreign debt, says S&P

Russia has defaulted on its foreign debt because it offered bondholders payments in rubles, not dollars, credit ratings agency S&P has said.

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Russia has defaulted on its foreign debt because it offered bondholders payments in rubles, not dollars, credit ratings agency S&P has said.

Highlights

  • Russia has defaulted on its foreign debt because it offered bondholders payments in rubles, not dollars, credit ratings agency S&P has said.
  • Russia has a grace period of 30 days from April 4 to make the payments of capital and interest, but it does not expect it will convert them into dollars.
  • Russia cannot access roughly $315 billion of its foreign currency reserves as a result of Western sanctions imposed following its invasion of Ukraine.
  • Russia is now planning legal action against the US Treasury and plans to go to court.
  • Russia’s central bank has decided to relax some other restrictions, according to data from Refinitiviv.
  • That is about 5% weaker than on Saturday.