Monday, March 21, 2022

Russia's Debt Crisis Has Global Consequences

Bank of Russia. TASS

Washington Post: The unpredictable risks of a new Russian debt crisis 

Financial markets rallied Friday after Russian officials made vital transfers to foreign investors, sidestepping what would have been Moscow’s first sovereign debt default in nearly two and half decades. But despite the collective sigh of relief on the floors of global stock exchanges, the risk of a new Russian debt crisis still looms large.

The problem with Russian debt today is far different than in 1998, when financial turmoil and a cash crunch forced Moscow to renege on payments to domestic bondholders in a financial event that rippled across the globe. This time, Russia has plenty of cash — but a big chunk of its reserves has been frozen by U.S., European and Japanese officials as punishment for its invasion of Ukraine.  

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WNU Editor: These are the payments that Russia must make in the coming months .... EXPLAINER-Russia faces a raft of external debt payments (Reuters).

1 comment:

Anonymous said...

Expect there to be "special exceptions" made every time a payment comes due. They will be permitted to pay with the 300 billion in frozen assets as long as the sanctions last. The only alternative is accepting rubles.