Filenews 15 April 2022
Russia may have gone bankrupt after trying to pay its bonds in dollars with roubles because of Western sanctions over the war in Ukraine, Moody's pointed out, in Moscow's first major default on foreign bonds since the 1917 revolution.
Moscow made a payment on April 4 for two government bonds - maturing in 2022 and 2042 - with roubles instead of dollars it was required to pay under the terms of the securities.
Russia "therefore can be considered to have defaulted on a payment under Moody's terms if nothing changes by May 4, which is the end of the grace period," the rating agency said.
"Contracts for bonds have no provision for repayment in any currency other than dollars," it said.
Moody's said that while some Russian bonds in euros issued after 2018 allow payment in orubles under certain conditions, those issued before 2018 (such as those maturing in 2022 and 2042) have no such provision.
"Moody's position is that investors as if they received the contractual promise of paying in foreign currency on the due date of the payment," the firm points out.
Source: Capital.gr
