Investors are supposed to receive about $100 million of interest on Russian foreign debt in their accounts by Friday, payments President Vladimir Putin’s government says it has already made.
The path for Russia to keep to narrowly avoid its first foreign default in a century is turning more onerous as another coupon comes due on the warring nation’s debt.
Investors are supposed to receive about $100 million of interest on Russian foreign debt in their accounts by Friday, payments President Vladimir Putin’s government says it has already made. That’s unlikely to satiate concerned bondholders who are itching to see the cash after the US Treasury closed a loophole that previously allowed American banks and individuals to accept such payments.
It’s the latest twist in a debt saga that has dragged on for months as the war in Ukraine and sanctions complicate the flow of cash from Russia to holders of its foreign debt. If Russia’s obligations aren’t fulfilled, a 30-day grace period ensues.
“We are in uncharted waters,” said Ehsan Khoman, head of emerging market research at MUFG Bank Ltd. in Dubai. “All eyes are now on May 27.”
