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This is a Ruble denominated bond! Why TF is Russia not paying a Ruble denominated bond? If you still needed evidence that Russia is being run by incompetent m
by thawaya3113 5y ago
This is a Ruble denominated bond!
Why TF is Russia not paying a Ruble denominated bond?
If you still needed evidence that Russia is being run by incompetent madmen, this is basically it. There is absolutely no self interested reason for Russia to not pay a Ruble denominated coupon.
- londons_explore 5y agoI think the Russian government will argue that they are completely willing to repay the bond within Russia's borders. But that the bondholder can't take that payment outside the country.
- unmole 5y ago> Russia’s National Settlement Depository reported that the Ministry of Finance sent the interest payment, as usual. In normal times, the depository would then transfer it to the accounts of bondholders with payment scheduled for delivery the following day. The issuer of a bond can make a payment to the accounting system, but the depository is banned from sending that on to foreign clients, the central bank said in a statement. The bond issuer has already issued the payment.
- neilwilson 5y agoSame reason the West isn't allowing dollars to be transferred from account to account. There's a war on. Since freezing accounts is the same as taxing 100%, Russia has responded in kind and taxed the coupon 100% via the same halted mechanism. What's good for the goose is good for the gander.