{"id":456470,"date":"2022-06-01T22:57:06","date_gmt":"2022-06-01T19:57:06","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/russia-misses-bond-interest-payment-as-potential-default-looms\/"},"modified":"2022-06-01T22:57:06","modified_gmt":"2022-06-01T19:57:06","slug":"russia-misses-bond-interest-payment-as-potential-default-looms","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/russia-misses-bond-interest-payment-as-potential-default-looms\/","title":{"rendered":"#Russia misses bond interest payment as potential default looms"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a368d8a9ae9d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a368d8a9ae9d\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/russia-misses-bond-interest-payment-as-potential-default-looms\/#%E2%80%9CRussia_misses_bond_interest_payment_as_potential_default_looms%E2%80%9D\" >&#8220;Russia misses bond interest payment as potential default looms&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CRussia_misses_bond_interest_payment_as_potential_default_looms%E2%80%9D\"><\/span>&#8220;Russia misses bond interest payment as potential default looms&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n<\/aside>\n<p>Russia committed a \u201cfailure to pay\u201d credit event when it missed a $1.9 million interest payment on one of its sovereign bonds in April, an international committee determined Wednesday \u2014 a sign that the Kremlin is edging toward its first foreign debt default since World War I.<\/p>\n<p>Russia violated the terms of an international dollar-denominated bond that matured on April 4 after it failed to include the interest payment within a grace period, according to the results of a vote by members of the Credit Derivatives Determinations Committee, a group of institutions that oversees the derivatives market.<\/p>\n<p>Credit Suisse, Goldman Sachs, JPMorgan Chase and Barclays were among the financial institutions that voted to confirm a \u201cfailure to pay\u201d event.<\/p>\n<p>Russia initially attempted to pay the dollar-denominated bond in rubles \u2013 a move that would have triggered a default \u2013 only to reverse course and transfer payment in dollars within a 30-day grace period. But the late payment did not include the $1.9 million in interest that accrued during the delay, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-06-01\/russia-in-failure-to-pay-credit-event-swaps-panel-rules?srnd=markets-vp#xj4y7vzkg\">Bloomberg<\/a> reported.<\/p>\n<p>Investors asked the committee to rule on whether Russia was in violation of the terms as they sought to collect on credit-default swaps, which function as a form of insurance against nonpayment of bonds.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/russia-failed-bond-payment-default-05.jpg?w=1024\" alt=\"Russian rubles\" class=\"wp-image-22493351\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/russia-failed-bond-payment-default-05.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/russia-failed-bond-payment-default-05.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/russia-failed-bond-payment-default-05.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Russia missed an interest payment during a 30-day grace period.<\/figcaption><figcaption><span class=\"credit\">Anadolu Agency via Getty Images<\/span><\/figcaption><\/figure>\n<p>The swaps covered a net of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roximately $1.5 billion of outstanding Russian debt through the end of May, according to the outlet.<\/p>\n<p>Despite the missed interest payment, Russia\u2019s other bond payments are not yet considered to be in default. A so-called \u201ccross default\u201d would only occur if Russia failed to pay at least $75 million, according to the terms of its Eurobond agreements.<\/p>\n<p>Russia has narrowly avoided default for weeks following the implementation of crippling Western sanctions since the Kremlin invaded Ukraine in late February. Those penalties have included the ejection of Russian financial institutions from the SWIFT international payments systems and the freezing of vast swaths of Russia\u2019s foreign currency and gold reserves.<\/p>\n<p>Last week, the White House said Russia was likely on the verge of failing to cover its international debt obligations after the Treasury Department allowed a key waiver to expire, ensuring that US banks and individuals could no longer accept bond payments from the Russian government.\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/russia-failed-bond-payment-default-01.jpg?w=1024\" alt=\"The Kremlin\" class=\"wp-image-22493348\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/russia-failed-bond-payment-default-01.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/russia-failed-bond-payment-default-01.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/russia-failed-bond-payment-default-01.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>The Kremlin has scrambled to avoid a default for weeks.<\/figcaption><figcaption><span class=\"credit\">Bloomberg via Getty Images<\/span><\/figcaption><\/figure>\n<p>\u201cThis means that Russia will likely fail to meet its obligation and face default, an enduring sign of their status as a pariah in the global financial system,\u201d White House Press Secretary Karine Jean-Pierre\u00a0told reporters.<\/p>\n<p>Meanwhile, Russia Finance Minister Anton Siluanov has decried the tightening financial vise as an \u201cartificial situation created by an unfriendly nation.\u201d\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/06\/01\/russia-misses-bond-interest-payment-as-potential-default-looms\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Russia misses bond interest payment as potential default looms&#8221; Russia committed a \u201cfailure to pay\u201d credit event when it missed a $1.9 million interest payment on one of its sovereign bonds in April, an international committee determined Wednesday \u2014 a sign that the Kremlin is edging toward its first foreign debt default since World War&#8230;<\/p>\n","protected":false},"author":1,"featured_media":456471,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/russia-failed-bond-payment-default-99.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[129804,109134,91513,4975,70868,126128],"class_list":["post-456470","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-6-1-22","tag-credit","tag-kremlin","tag-russia","tag-ukraine","tag-ukraine-war"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/456470","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=456470"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/456470\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/456471"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=456470"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=456470"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=456470"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}