Russia failed to pay interest on a debt: investor panel

Russia failed to pay interest on a debt: investor panel

Russia failed to pay interest on a debt: investor panel
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  • Russia has failed to pay $1.9 million in accrued interest on a government bond.
  • Western sanctions have largely severed Russia from the international financial system.
  • The country’s foreign currency debt was last defaulted on in 1918 when Bolshevik leader Vladimir.
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A panel of investors announced Wednesday that Russia has failed to pay $1.9 million in accrued interest on a government bond, putting the country on the verge of its first default in decades.

The Credit Derivatives Determinations Committee (CDDC) stated on its website that it voted “yes” in response to an inquiry about whether a “Failure to Pay Credit Event” had happened.

Punishing Western sanctions on Russia has largely severed the country from the international financial system, making it difficult for Moscow to service its debt.

Read More: Chinese, Russian scholars help to strengthen bilateral ties

The country’s foreign currency debt was last defaulted on in 1918 when Bolshevik revolutionary leader Vladimir Lenin refused to acknowledge the commitments of the ousted tsar’s authority.

In 1998, during a global financial crisis, it defaulted on ruble-denominated loans.

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However, penalties would be the reason for the country’s failure to repay creditors this time.

The CDDC ruling concerned a bond that matured on April 4, but the principal and interest payment was not made until May 2, resulting in an additional $1.9 million owing.

Read More: Russia’s ‘political’ debt default sets a precedent for emerging markets

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