The Russian government has announced that it has paid interest and redeemed dollar-denominated government bonds, which were due on the 4th, in dollars.
Initially, it was supposed to be paid in its own currency, the ruble, but it seems that the aim is to avoid default = default.
The Russian Ministry of Finance announced on the 29th that it has paid $ 649.2 million in interest and redemption of dollar-denominated government bonds due on April 4, and about 84 billion yen in Japanese yen. bottom.
He claims to have "fulfilled his obligations" for sending money to his payment agent, the London branch of Citibank, USA.
Initially, the Russian Ministry of Finance said that while the United States and other countries imposed strict economic sanctions, interest payments and redemptions due on the 4th were carried out in their own currency, the ruble.
However, after that, a committee made up of representatives of major financial institutions in the world decided that potential default = default, and default if not paid in dollars by the end of the 30-day grace period next month. Was expected to be judged.
The Russian response this time seems to be aimed at avoiding the impact on future financing and showing that it can afford to pay in dollars.
However, the market has pointed out that it is unclear whether defaults will be avoided until payments to investors can be confirmed.