Sovereign default of Russia became more likely after the Wednesday, American bond market regulators announced that the Kremlin did not fulfill its obligations to service the public debt of Russia, offering creditors percentage payments on dollar bonds in rubles. It is reported by the Wall Street Journal newspaper.
Payments in rubles were produced on April 6 after the American bank JPMorgan refused to transfer to the Holders of Russian bonds 649 million dollars, which are frozen as a result of sanctions of the accounts of the Central Bank of Russia. If Russia does not pay this amount until May 4, the expiration of the so-called grace period, it is formally in a state of default or, as Moody’s rating agency analysts write, such a situation “can be considered as default.” Debts that Moscow refuse to serve, amount to 6 billion dollars.
The Ministry of Finance of Russia declares that the agency has fulfilled its obligations by trying to pay interest on debts in rubles. Investors buying insurance tools protecting holders of Russian government bonds in the event of a default, estimate its probability of 93 percent.