According to reports, the Russian Federation has defaulted on its foreign debt for the first time since 1918. Bondholders told the press that they had not received payments from the transcontinental country. However, Russia’s finance ministry denies the allegations and says the country made the payments via the Euroclear monetary system.
Now that the grace period is over, bondholders will have to agree on whether or not it is officially a default against the loans. Reuters claims Russia’s move to not pay is “an act of political theatre at bondholders’ expense” and default makes them “political stooges.” The Kremlin, however, claims otherwise and says that the default is a “farce” because Western sanctions blocked the country’s payments. Russia’s finance ministry said it had made the payments to bondholders denominated in euros.
What do you think about the media claims that say Russia defaulted on its foreign debt? Do you agree with the Kremlin’s statements? Let us know what you think about this subject in the comments section below.