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Russia in default on foreign debt, it is the first time since 1918

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(ANSA) – WASHINGTON, June 26 – Russia is in default on its foreign currency debt, for the first time since 1918. Bloomberg reports.

The default was triggered when the grace period expired on approximately $ 100 million of unpaid bonds, blocked due to wide-ranging sanctions against the Kremlin in response to the invasion of Ukraine.

The event actually has a more symbolic value than anything else, at least for now. Russia is in fact a country economically, financially and politically already marginalized for a large part of the West. In addition, the bankruptcy would be due not to the lack of money on the part of the debtor but to the closure of the transfer channels by the creditors. Moscow had already touched the same probability in the first months of this year, but had managed the situation by changing the payment methods. However, in May, the US Treasury did not renew the license that exempted American investors from sanctions: from that moment it became impossible for the Russians to pay the debt in dollars or in the currencies mentioned in the prospectuses of the issues.

(HANDLE).

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Source: Ansa

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