Latest News by Industry
• The move increases the chances of Russia defaulting on its outstanding debt
The US Treasury Department announced that the government would ban Russia from paying bondholders through American banks starting Wednesday morning.
This move increases the chances of Russia defaulting on its outstanding debt.
The U.S. Treasury Department said in a statement it would not extend a license that had allowed Russia to make payments on its sovereign debt, until now.
The waiver had allowed Moscow to keep paying interest and principal and avert a default on its government debt.
Last week, Treasury Secretary Janet Yellen confirmed it was unlikely the US would allow Russia to make bond payments on its foreign-currency debt, as investors have had time to adjust to Moscow’s exclusion from the global financial system.
Russia has been unable to access its foreign reserves totaling about $315 billion, to pay off its debts. Until now, it has continued to pay its creditors without accessing those frozen assets.
Read more:
Source: Treasury Department