RobDownSouth
No Kings
- Joined
- Apr 13, 2002
- Posts
- 77,843
Standard & Poor has declared Russia in "selective default" on foreign debt as of last Friday.
What happened?
Russia was contractually bound to make interest payments on a large foreign bond debt. The payment was due in American dollars. Russia attempted to pay the debt in (artificially inflated) Russian rubles. The Kremlin's talking head said this was not their default, saying in effect "errybody knows we have dollars in foreign accounts, we just can't access them". In other words, "it's Biden's fault".
Unlike western Europe nations who were forced to pay for Russian petrol products in rubles beginning last week, the world financial markets said "Nyet" and the artificially inflated ruble dropped 5 percent in one day.
A "selective default" means a portion of the debt is now in default. Russia is now in a 30 day grace period to make things right, or a "general default" will be declared.
What happened?
Russia was contractually bound to make interest payments on a large foreign bond debt. The payment was due in American dollars. Russia attempted to pay the debt in (artificially inflated) Russian rubles. The Kremlin's talking head said this was not their default, saying in effect "errybody knows we have dollars in foreign accounts, we just can't access them". In other words, "it's Biden's fault".
Unlike western Europe nations who were forced to pay for Russian petrol products in rubles beginning last week, the world financial markets said "Nyet" and the artificially inflated ruble dropped 5 percent in one day.
A "selective default" means a portion of the debt is now in default. Russia is now in a 30 day grace period to make things right, or a "general default" will be declared.
