Can you believe it’s Monday again? Feels like it was just Monday, well, a week ago. …
Can you believe it’s Monday again? Feels like it was just Monday, well, a week ago. Phil Rosen here — reports say Russia has defaulted on its foreign debt for the first time since 1918, but the Kremlin says otherwise. Let’s see what’s cookin’. If this was forwarded to you, sign up here. Download Insider’s app here.
1. Russia defaulted on its foreign debt for the first time in a century, according to reports. For months following the country’s invasion of Ukraine, Western sanctions have stymied its attempts to fulfill its obligations. On Sunday — when the grace period on around $100 million of interest payments due on May 27 expired — bondholders told The Wall Street Journal and Reuters they had not received their payments. But Russia’s finance ministry said it made the payments on the bonds denominated in euros by sending the money to Euroclear, a bank that would then distribute the finances to investors. Labelling the situation « a farce », the Kremlin said any default is artificial, as it has the money to pay its debts, but sanctions are hampering institutions’ ability to accept it. As the final grace period has passed, a deadline considered an event of default if missed, the focus is now on bondholders of 25% of the outstanding bonds, and whether they agree to declare that a default has occurred.
