Now, in the absence of this permission, Russia will not be able to pay off government bonds and may be on the verge of default
The US Treasury announced its refusal to renew a license that allows the Russian Federation to make payments to service its foreign debt. This is stated in the official message on the website of the department.
The license expired on May 25 at 07:01 Moscow time. Now, in the absence of this permission, Russia will not be able to pay off government bonds and may be on the verge of default.
Russia was supposed to make the next obligatory payment in foreign currency on May 27, but the Ministry of Finance of the Russian Federation paid the required funds in advance, on May 20. The next payments are due June 23-24. As noted by The Bell, in the event that they fail to hold, after the expiration of the month, that is, at the end of July, Russia may face a formal default.
The fact that the US Treasury does not plan to renew the license that allowed Russia to make payments on government bonds, Bloomberg, citing sources, reported on May 18.
At the beginning of this month, the Russian authorities managed to prevent a default on their external debt in foreign currency by making payments in dollars on two issues of sovereign Eurobonds, the maturity of which ended on April 4. Previously, Russia tried to make payments on loans in rubles, but this step would have been a change in the terms of the bond issue and could be considered a default.
