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Russia in “failure to pay” credit event, investor committee says
- aritmo 4y agoWhy does this happen? Russia does not have the money to pay?
- mzs 4y agoThey failed to pay, a letter was sent, then they sent a payment minus all owed interest, now it's past the grace period. They had to pay a certain way which all parties originally agreed to but because they want to conserve certain funds they tried to modify the terms unilaterally. At this point they still have the funds but don't want to use up the hard currency they still have.
- pbohun 4y agoIt's my understanding that Russia is ready and willing to pay its debt but has been forced against its will to default by US government sanctions. Russia even anticipated this and payed 2 payments in advance[1]. [1] https://news.yahoo.com/us-end-russias-ability-pay-192110081.html https://news.yahoo.com/us-end-russias-ability-pay-192110081....
- mzs 4y agoThey have reserves which they refuse to use: https://cbr.ru/eng/hd_base/mrrf/mrrf_7d/ https://cbr.ru/eng/hd_base/mrrf/mrrf_7d/
- mzs 4y agoderivatives committee votes: https://twitter.com/BondHack/status/1532017451621404674 https://twitter.com/BondHack/status/1532017451621404674 details of votes, showing Citibank was the sole dissenter and why: https://twitter.com/seth_hettena/status/1532100783671418880 https://twitter.com/seth_hettena/status/1532100783671418880 Pimco stands to lose billions if Russia defaults on its debt: https://www.ft.com/content/8d5bfe45-ebcb-4f75-8f4f-e0435ca87c1d https://www.ft.com/content/8d5bfe45-ebcb-4f75-8f4f-e0435ca87...