Russia Is Spiraling Toward a $150 Billion Default Nightmare
Bloomberg: Russia Is Spiraling Toward a $150 Billion Default Nightmare
(Bloomberg) -- Russia’s economy is fraying, its currency has collapsed, and its debt is junk. Next up is a potential default that could cost investors billions and shut the country out of most funding markets.
Warning lights are flashing as the government kickstarts the process of paying $117 million in interest on dollar bonds Wednesday, a key moment for debt holders who’ve already seen the value of their investments plunge since Russia invaded Ukraine last month.
The government says that all debt will be serviced, though it will happen in rubles as long as sanctions — imposed because of the war — don’t allow dollar settlements. Failure to pay, or paying in local currency instead of dollars, would start the clock ticking on a potential wave of defaults on about $150 billion in foreign-currency debt owed by both the government and Russian companies including Gazprom, Lukoil and Sberbank.
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Russian Government And Companies Facing $150 Billion Default Nightmare
Russia to 'Default' If Dollar Coupons Paid in Rubles, Fitch Says -- Bloomberg
Russia rouble payment of USD coupons would be a sovereign default -Fitch -- Reuters
Here’s a list of Russia’s upcoming debt payments -- CNBC
Russia could be about to default on its debt: Here’s what you need to know -- CNBC
EXPLAINER: What would a Russian bond default mean? -- AP
What Russia’s looming debt default means for global economy -- NYPost
As Russia nears a debt default, talk now turns to global contagion -- CNBC
8 comments:
It's completely lawful for the Russian central bank to have those debts serviced in rubles by the way. Was no one in the administration considering this when they wrote up the sanctions? Now we've got major US hedge funds and financial instituions with a vested interest in the ruble not hyperinflating. Entities like Blackrock will have a strong vested interest in either:
A) having the sanctions relaxed
or
B) picking the public coffers for restitution
7:21
It means that Russian imports become way more expensive, so it is a two edges sword. It will hurt the Russians a lot.
I don't have much use for Blackrock.
Combined with the news of Saudis selling oil in yuan, there will not be a reserve currency.
There will be a basket of currencies, which was talked about in articles in the magazine "Foreign affairs"
This a good thing. No longer will Democrats be able to print money. This is coming to an end in 1 or 2 presidential cycles.
Fuck the Democrats!
Let go Brandon!
its going 2 take a holy thing 4 u r turn around
Economic sanctions have never worked and never will.
Yes, the Russian people will suffer but that, as usual, will not change anything for power.Yes, western businesses will suffer too, not governments.
With it's dyign gasp I'm sure the biden administration will begin a hard crackdown on cryptocurrencies in an effort to slow the fall.
Economics is like dominoes...hit one and they all start to tumble. Krugerman and the other guys who think this is going to take place and only the Russians are going to be hurt are delusional.
It is all tied together. Just wait long enough.. I figure you will see the major breakdowns come this fall when the harvests come short if.... russian/ukie sanctions are still in place.
In the mean time inflation is going to go thru the roof.. Why ? Gas prices...everything goes by truck or rail or boat all use fuel. Fuel goes up you pay more...simple as that.
8:27 troll
anonymous 8:45
.. the standard ad hominem attack. seen a lot of that lately.. ok just wait and see....genius.... when. gasoline is 10 bucks a gallon and the price of food goes thru the roof. in 6 months you can come back and tell me I was wrong. In the mean time some good advice. Stock up now before it is too late. Wake up and smell the coffee. The average Joe in the street is going to get the dirty end of the stick You and I will pay thru the nose because these fools could not agree on things. Fine wave the flag... maybe in 6 months you can eat it to fill your belly when you have no food.
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