S&P places Russia in selective default

Posted Apr 10, 2022, 5:41 PMUpdated on Apr 10, 2022, 5:51 PM

The shadow of bankruptcy has hung over Moscow since the beginning of its offensive in Ukraine. And the threat materialized. On Saturday, the rating agency S & P Global ratings placed Russia in selective default on its international debt. This decision currently concerns only two bond lines, issued in American currency, for an amount of 650 million dollars.

However, Moscow paid its creditors on Thursday. But in rubles, for lack of being able to do it in dollars. Washington had until then tolerated that, despite the sanctions that hit the country, Russia could draw on its dollar assets placed in American banks to meet its obligations. This had enabled the country to avoid default on several occasions. The United States considerably hardened its position last week. US banks are now prohibited from transferring dollars belonging to Russia.

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