Moody's ratings agency has confirmed that Russia defaulted on foreign debt for the first time in a century after bondholders did not receive $100 million in interest payments.
“Missed coupon payment constitutes a default,” Moody’s said in a statement late Monday.
Bloomberg had earlier reported that Russia has defaulted on its foreign debt after the expiration of the grace period on about $100 million in interest Sunday evening, in what would mark its first such default since the Bolshevik revolution in 1918.
The Kremlin dismissed reports that it defaulted on its external debt Monday, saying the payment had been made in foreign currency in May.
“The fact that the funds have not been transferred to the recipients is not our problem,” Kremlin spokesman Dmitry Peskov told reporters.
Moody’s analysts forecast that Russia would default on more foreign debt.
"Further defaults on future coupon payments are likely," Moody's said in the statement.
On Tuesday, noting that Moody's no longer covers Russia, Peskov said: "Does this mean that Moody's restarted the ratings process? The agency must surely explain itself."
Rating agencies — which withdrew from Russia after it invaded Ukraine — or courts are the entities that typically declare default in Western financial markets, according to the Associated Press.
Analysts told the news agency they see little short-term impact on the Russian economy, which continues to be powered by energy exports despite crushing Western sanctions.
And although its ripple effect could be more limited than in 1998, when Russia suffered a default on public and private debt during an economic collapse, the pressure on investors to make less risky moves on the global debt market could lead other emerging economies to declare defaults.
Longer-term, it would take years for Russia to start borrowing internationally again after being declared in default, the AP said.
Russia’s default is largely described as a symptom of its isolation from the global financial system and disrupted international trade and financial ties as a result of Western sanctions for its invasion of Ukraine, Moscow Times reports.
See all the news
What regime of sanctions applies to Russian oil and what requirements Georgia has to comply?
Financial Services in CAREC
#TheCheckpoints: TIWB & Georgia - Interview with Rusudan Kemularia, Head of TIWB Secretariat
#TheCheckpoints: The Professional - Demnagram_Story of Saba Bakhia
#პროფესიონალი: საბა ბახია
Stoli® Group to Release Limited-Edition Bottle in Support of the Ukrainian People
როგორ მოხვდა 17 წლის ანასტასია ლელაძე ჰარვარდში? - ანასტასია ლელაძე ქალების ნარატივში
"Literally the whole village was waiting for the first harvest of strawberry" - Kvitsiani family from Svaneti
Aliyev replaces long-serving central bank head with loyalist
Putin imposes visa restrictions on citizens from 'unfriendly' countries
BMG-ს მედია რუბრიკა: #პროფესიონალი - გიორგი მიქაია
ყველაზე სანქცირებული რუსი ოლიგარქები
Business Leaders Council by USAID and Georgian Business
ვინ არის მსოფლიოში #1 სნაიპერი “Wali”?
ბინების ქირის ფასი 50%-მდე გაიზარდა
OECD formally terminates the accession process of Russia
"Today we are all Ukrainians"- Zurab Pololikashvili
საქმიანი დილა - 25.02.2022 - გადაცემა სრულად
Tourism is the main bridge for building understanding - ZURAB POLOLIKASHVILI