Russia is about to enter as the deadline for paying $ 100 million in interest to creditors expires. Default This Sunday, if confirmed, the first debt of more than a hundred years will not be repaid.
In question, about $ 100 million (approximately மில்லியன் 95 million at current exchange rates) should have been paid in interest. Made by May 27th. Failing that deadline, Russia had 30 days to expire, ending this Sunday.
The Russian government guarantees that the money has been paid and, therefore, maintains that the obligation will be fulfilled. However, Russia was targeted International sanctions It effectively removes the country from the world financial system, including financial sanctions, from occupying Ukraine and preventing the movement of funds. Therefore, even if changed, it is unlikely that the amount in question will reach the recipients, which will lead to the default of Russia.
This is not a surprising result. “Since March, we have believed a Default From Russia was probably unavoidable. The question is when, ”a lawyer who specializes in sovereign debt cases told Reuters. To the question, the same lawyer adds, finally at the end of May, two days before the deadline for the payment in question, the US Treasury Department decided to close a gap in sanctions, until it was still allowed Russia pays its debt in dollars For US investors.
The practical effect of non-repayment of the loan will be minimized. Under normal circumstances, it would be difficult for Russia to return to the markets, but this time it is a source of funding, which is subject to sanctions. At the same time, as a result of revenues from oil and natural gas, the country has significant cash reserves, so the direct impact on the population, at least initially, will be minimized.
The impact will be felt largely in the future, when Russia returns to finance international markets Default Often leading to increased financial costs. In addition, you should count the lengthy processes you have to go through when you enter the default. When it finally failed to repay the loan in 1918, Russia was unable to reach an agreement with the debtors until 1998.