Beautiful Virgin Islands

Wednesday, Mar 29, 2023

Russia To Repay Foreign Debt In Rubles After US Ends Exemption

Russia To Repay Foreign Debt In Rubles After US Ends Exemption

Russia-Ukraine War: The US Treasury it was closing the escape clause to the drastic financial sanctions imposed on Moscow.
Russia said Wednesday that it will start paying its foreign debt in rubles after the United States ended an exemption allowing Moscow to make the payments in dollars held in Russia.

The US Treasury announced Tuesday it was closing the escape clause to the drastic financial sanctions imposed on Moscow after it sent troops to Ukraine, pushing Russia closer to default.

"Noting that the refusal to extend this licence makes it impossible to continue servicing government foreign debt in US dollars, payments will be carried out in Russia's currency," the finance ministry said in a statement on Telegram.

The ministry added that there would be a "possibility to later convert them (payments) into the original currency" using a Russian financial institution as the paying agent.

Punishing Western sanctions on Russia have largely severed the country from the international financial system, including blocking Moscow's ability to access funds held in US banks to pay its foreign creditors.

The US move scrapped the final exemption, which was forcing President Vladimir Putin's government to drain its war chest of foreign currency reserves to make payments.

Russian Finance Minister Anton Siluanov said in the statement that the current situation was "artificially created by an unfriendly country."

He said that it "primarily hurts the rights of foreign investors in Russian debt instruments".

Siluanov stressed the situation has "nothing in common" with 1998, when Russia defaulted on domestic ruble-denominated debt amid a broader financial crisis.

"Now we have money and a desire to make payments, too," the minister said, adding that the step would not affect Russians' quality of life.

US Treasury Secretary Janet Yellen said last week that "if Russia is unable to find a legal way to make these payments... they technically default on their debt."

The Russian government has attempted to pay in domestic currency, but many of the bonds do not allow repayment in rubles.

The next debt service deadline on May 27 is for is for 100 million euros in interest on two bonds: one requires payment in dollars, euros, pounds or Swiss francs only; the other can be paid in rubles.

According to reports by Reuters and The Wall Street Journal on Friday, the Russian Finance Ministry transferred funds out of the country early to make the payments and avoid default.

Nearly $400 million in interest is due in late June.

After a 15- to 30-day grace period following a missed payment, the country likely would be declared in default, further deteriorating its financial position and allowing creditors to take legal action to recover the funds.

The country last defaulted on its foreign currency debt in 1918, when Bolshevik revolution leader Vladimir Lenin refused to recognise the obligations of the deposed tsar's regime.
Comments

Oh ya 307 days ago
The US has shot itself in the head by stealing FX reserves. They have officially told the rest of the world they can not be trusted to hold another countries FX reserves because if you cross them they will steal it. The USA a dying nation circling the toilet bowl

Newsletter

Related Articles

Beautiful Virgin Islands
Close
0:00
0:00
Nashville style execution
I have a dream, MLK inspiring speech
Elon Musk and Others Call for Pause on A.I., Citing ‘Profound Risks to Society’
Aretha Franklin, Marvis Staples - Oh Happy Day
“We've had evidence prior to the pandemic that masks were largely ineffective at preventing community transmission of influenza “
BVI Freedom Song
Former Starbucks CEO Howard Schultz:
Billy Preston - You Can't Beat God Giving (Live)
Former Starbucks CEO Howard Schultz rejects being labeled a "billionaire"
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
Jamie Dimon is being deposed over JPMorgan Chase role in Epstein lawsuits
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
This is how an electric car saves all the energy that he would have spent if he had lived 50 years longer.
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
Brand new security footage has just been released to the public showing the Active shooter Audrey Elizabeth Hale drove to Covenant Church School in her Honda Fit this morning, parked, and shot her way into the building
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
Social Media censoring users for saying the true
Hello Dolly
Smart Iranian fashion designer teaching dummy TV anchors lesson about reality
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
AMERICA, 2023
Bob Marley - Get Up Stand Up
U.S. charges FTX's Bankman-Fried with paying $40 million bribe
Yes He Can
Fallen 'Crypto King' Who Owes Millions to Investors Was Kidnapped and Tortured
What A Friend We Have In Jesus
Regulators blame social media for SVB's rapid collapse: 'Complete game changer'
Unforgettable
AOC explains why she opposes banning TikTok
Touch The Hem Of His Garment
UK: Humza Yousaf replaces Nicola Sturgeon as SNP leader and first minister in Scotland
The Lord's Prayer
In a dramatic U-turn against His Government: Judicial Reform Legislation Must Be Halted, Says Israeli Defense Minister Yoav Gallant
THE GOD MOVEMENT...BEAUTIFUL BVI
Gordon Moore, a co-founder of Intel Corporation, died at 94
Siyahamba
Powell: Silicon Valley Bank was an 'outlier'
Ray Charles And The Voices Of Jubilaton, Oh, Happy Day
Donald Trump arrested – Twitter goes wild with doctored pictures
Ramblin' Rose
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
Protoje - Who Knows ft. Chronixx
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Pressure - Virgin Islands Nice
Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
Phil Wickham - House Of The Lord
Paris Rioting vs Macron anti democratic law
My God Is Real (Yes, God Is Real)
'Sexual Fantasy' Assignment At US School Outrages Parents
The Lion King Circle of Life by LEBO M. — LIVE at the HAVASI Symphonic
Credit Suisse to borrow $54 billion from Swiss central bank
Louis Armstrong - When The Saints Go Marching In
Russian Hackers Preparing New Cyber Assault Against Ukraine
Kanye West Sunday Service - hallelujah, salvation, and glory
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
Jonathan Nelson - I Believe (Island Medley
If this was in Tehran, Moscow or Hong Kong
From The Virgin Islands Sqad Up
Nashville police officer, and a female driver shooting one another
Common, John Legend - Glory
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
Anthony Evans vs. Jesse Campbell - If I Ain't Got You
Mexican President Claims Mexico is Safer than the U.S.
I have a dream, MLK inspiring speech
A brief banking situation report
Aretha Franklin, Marvis Staples - Oh Happy Day
Lady bites police officer and gets instantly reaction
BVI Freedom Song
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Billy Preston - You Can't Beat God Giving (Live)
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
VIRGIN ISLANDS REGGAE CARIBBEAN RIDDIMZ
Good news: The U.S. government is now guaranteeing all deposits, held by, Silicon Valley Bank, and the funds are available as of today
Oh Happy Day Edwin Hawkins - Anthony Brown w FBCG Combined Choir
Silicon Valley Bank exec was Lehman Brothers CFO
'Stand by Me' performed by Karen Gibson and The Kingdom Choir
In a potential last-ditch effort, HSBC is considering a rescue deal to save Silicon Valley Bank UK from insolvency
National Anthem of the British Virgin Islands - Oh, Beautiful Virgin
BBC Director General, Tim Davie, has apologized, but not resigned, yet, following the disruption of sports programmes over the weekend
Hello Dolly
A Mississippian man, who was once considered a “ticking time bomb,” has lost a whopping 165 kilograms! What motivated this incredible transformation?
for KING & COUNTRY - Amen (Reborn) [feat. Lecrae & The WRLDFMS Tony Wi
Elon Musk Is Planning To Build A Town In Texas For His Employees
Bob Marley - Get Up Stand Up
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
Yes He Can
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
What A Friend We Have In Jesus
Fitness scam
Unforgettable
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Touch The Hem Of His Garment
A primitive judge in Australia sparked outrage when he told a breastfeeding woman to leave his courtroom for being “a distraction"
The Lord's Prayer
Barcelona is feeling the heat as they face corruption charges over payments to former vice-president of Spain's referees' committee, Jose Maria Enriquez Negreira
THE GOD MOVEMENT...BEAUTIFUL BVI
Senator Tom Cotton: If the Mexican Government Won’t Stop Cartels from Killing Americans, Then U.S. Government Should
Siyahamba
Banking regulators close SVB, the largest bank failure since the financial crisis
Ray Charles And The Voices Of Jubilaton, Oh, Happy Day
×