Russia makes bond payments in dollars, cedes mandate in rubles to avoid default 2022-04-29 16:15:28

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Russia appeared Hardly to avoid default on Friday because he paid a number of arrears international debt In dollars, it reversed its recent policy of requiring transactions to be conducted in rubles.

The Treasury said it paid $564.8 million on a 2022 Eurobond and $84.4 million on a dollar 2042 bond, as defined in the bond, Reuters reported.

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Russia has faced the threat of default repeatedly since the West announced harsh sanctions that Moscow and bank officials have been able to combat with a number of tough and extreme measures, including capital controls and the suspension of trading on the Moscow Stock Exchange for nearly a month.

Officials have remained anxious to avoid the country’s first default since the financial meltdown in 1998.

Russia tried to pay for bonds using rubles at the beginning of April, but banking and credit institutions did not expect the transaction to take place due to legal requirements associated with the type of currency used. Russian President Vladimir Putin was imposed that all payments Because Russian energy should be in rubles, going so far as to cut off Poland and Bulgaria for their refusal to comply.

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Standards and the Poor (S&P) Downgraded the foreign currency rating of Russia For fear of not completing the payment in time despite the 30 day grace period.

The head of the Bank of Russia, Elvira Nabiullina, warned against that country Didn’t feel the full effect of sanctions after it appeared that Russia was stabilizing its free economic downfall.

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“The sanctions have affected the financial market, but now they will begin to affect the real economy increasingly,” she said last week.

Anthony Kim, a researcher in economic freedom at the Heritage Foundation, told FOX Business that Russia’s economic recovery is an “ongoing process” that will continue to worsen the longer the invasion of Ukraine drags on.

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“There was an immediate shock or reaction from the Russian market and markets outside Russia, which is why we saw this immediate legitimate panic and legitimate stagnation,” Kim explained. “And what we are in now is a different kind of period.”

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