Historic Russian, Debt Default Likely , Amid Intense International Sanctions.
On March 16, Russia faces a crucial bond payment that could lead to Moscow's first default since 1998.
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'The Guardian' reports that it would also be Russia's first major international debt default since the Bolshevik revolution.
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'The Guardian' reports that it would also be Russia's first major international debt default since the Bolshevik revolution.
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With many of Russia's foreign exchange reserves frozen by sanctions, Moscow may be unable to pay $117 million in interest payments.
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According to 'The Guardian,' this historic default would add significantly to the pressure being applied to Russia's economy.
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The onset of war, western sanctions, the exodus of international conglomerates and freefalling investor confidence have led to Russia’s downfall with its currency, financial system, and the wider economy in a state of ruin, Victoria Scholar, head of investment at Interactive Investor, via 'The Guardian'.
The onset of war, western sanctions, the exodus of international conglomerates and freefalling investor confidence have led to Russia’s downfall with its currency, financial system, and the wider economy in a state of ruin, Victoria Scholar, head of investment at Interactive Investor, via 'The Guardian'.
Although Russia technically has a 30-day grace period before an official default, a full-blown collapse is almost inevitable, Victoria Scholar, head of investment at Interactive Investor, via 'The Guardian'.
Although Russia technically has a 30-day grace period before an official default, a full-blown collapse is almost inevitable, Victoria Scholar, head of investment at Interactive Investor, via 'The Guardian'.
Russia's finance minister has accused the West of engineering an "artificial default" by freezing Russia's foreign exchange reserves.
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Russia's finance minister has accused the West of engineering an "artificial default" by freezing Russia's foreign exchange reserves.
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Earlier this week, Russia's finance ministry announced that if Western sanctions proved to be a complication, Moscow could pay the debt in rubles.
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However, rating agency Fitch said that the interest payments must be paid in dollars and would, "constitute a sovereign default on expiry of the 30-day grace period.".
According to the 'The Guardian,' the IMF and other experts predict that a Russian default would not trigger a global financial crisis.
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According to the 'The Guardian,' the IMF and other experts predict that a Russian default would not trigger a global financial crisis.
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While a default would be symbolic, it seems unlikely that it will have significant ramifications, both in Russia and elsewhere, William Jackson, Chief emerging markets economist at Capital Economics, via 'The Guardian'
