[국제]Russia defaults on foreign currency denominated government bonds for the first time in 104 years… “Financial market impact is limited”

Russia defaulted, or defaulted, because it failed to pay interest on foreign currency denominated government bonds.

This is because the West blocked foreign debt payment channels when it invaded Ukraine in February, but the impact on the international financial market is expected to be small.

This is reporter Im Soo-geun.

Russia defaulted and defaulted as it failed to repay $100 million in interest to its dollar and euro denominated bondholders.

The original maturity date of the interest was the 27th of last month, but a 30-day grace period was in effect.

This default is due to the US and other Western countries blocking Russia’s international payment channels after the invasion of Ukraine.

The US has been putting pressure on the Russian economy by banning its citizens from all dealings with the Russian Ministry of Finance, the central bank and sovereign wealth funds.

[토니 블링컨 / 미국 국무장관 : 러시아 채권이 정크 상태로 강등됐습니다. 내년 러시아 경제가 10~15% 역성장할 것으로 보입니다.]

The Russian government is fighting back, claiming that it has already sent interest on government bonds to Euroclear, an international depository settlement company.

The point is that Euroclear can only transfer interest to investors, but investors are not getting their money due to US sanctions.

Russia’s finance minister, Anton Siluanov, criticized the situation as “absurd”, saying the West had created an artificial barrier to label Russia as ‘default’.

It is analyzed that the impact of this default on the global financial markets and the Russian domestic economy will be limited.

However, it is evaluated that it has a symbolic meaning that Russia has begun to be excluded from the global economy and financial system.

It is the first time Russia has declared a default on foreign debt in 104 years since the 1918 socialist revolution.

This is YTN Im Soo-geun.

YTN Lim Su-geun ([email protected])

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