Credit ratings agency S&P Global has placed Russia under "selective default" on its foreign debt after the country offered rubles for payments on two dollar-denominated bonds due on April 4th.

The agency said in a press release that paying in rubles instead of dollars amounted to a “selective default.”

What is selective default? According to S&P, selective default is declared when an entity has defaulted on a specific obligation but not its entire debt.

Some background: Last week the US Treasury blocked Russia from accessing its foreign currency reserves in American banks, forcing Moscow to offer to pay its debts in rubles, diverting foreign currency revenue that would otherwise be used to prop up its war effort, or not pay at all.

The US Treasury had been allowing Russia to use some of its frozen assets to pay back certain investors in dollars until then.

Kremlin spokesman Dmitry Peskov said in a press conference Wednesday that a default would be “artificial” because Russia has dollars to pay but cannot access them due to the sanctions.

“There are no grounds for a real default,” Peskov said. “Not even close.”

Russia to sue: Speaking to the pro-Kremlin Izvestia newspaper Monday, Russian Finance Minister Anton Siluanov said Russia would launch a legal action over the issue.

“We will sue, because we undertook all necessary action so that investors would receive their payments. We will show the court proof of our payments, to confirm our efforts to pay in rubles, just as we did in foreign currency. It won't be a simple process.”

Source: https://edition.cnn.com/

Where are Putin's minions on nairaland

Good news this morning but for the guy up there that displaced me.....

God1000:
Where are Putin's minions on nairaland

We warned them here that US has a mix of options in its arsenal to wreck the economy of Russia. Russia is meant to settle its debt in USD but now offering Rubles to its creditors. US has been allowing Russia some degree of access to its frozen financial assets but the US has NOW decided a total blockage. Now, Russia can't pay in Rubles and this leads to the default.

Watch out as Russia credit rating starts to fall, which means Russia will have to pay heavy interest anytime it wants to borrow from any country. Russia is fighting economic war and conventional war at the same time, it will soon be sent back to the 300BC at this rate.

Still have grace period of 30 days to pay up. It’s going to affect the bond holders tho especially JP Morgan. Markets going to be bloody today. Let’s see what happens.

God1000:
Where are Putin's minions on nairaland

Russia paid in rubles. Its left for them to go cash their money in American banks.

MT:


We warned them here that US has a mix of options in its arsenal to wreck the economy of Russia. Russia is meant to settle its debt in USD but now offering Rubles to its creditors. US has been allowing Russia some degree of access to its frozen financial assets but the US has NOW decided a total blockage. Now, Russia can't pay in Rubles and this leads to the default.

Watch out as Russia credit rating starts to fall, which means Russia will have to pay heavy interest anytime it wants to borrow from any country. Russia is fighting economic war and conventional war at the same time, it will soon be sent back to the 300BC at this rate.

Who loses? Isn't it the creditor?

rottennaija:


Who loses? Isn't it the creditor?

Russia loses big time. That is why it wants to go to court over it. High interest rate will kill Russia economy. No country desires to lose its credit rating.

MT:


Russia loses big time. That is why it wants to go to court over it. High interest rate will kill Russia economy. No country desires to lose its credit rating.

Bond holders loses too. JP Morgan is already crying over this. And yes, Russia loses credit rating. Let’s see what happens in 30 days of grace period.

MT:


Russia loses big time. That is why it wants to go to court over it. High interest rate will kill Russia economy. No country desires to lose its credit rating.

Yeah. Keep believing trash.

The truth is, Russia don't need any damn rating to stay relevant. Just default and let the ediots and their own creditors settle their scores. After all, the whole world knows it's not your fault, and besides,Russia don't own much debt.

BTW. OP, this your headline is misleading. Why don't you wait until they're officially at default?

https://www.youtube.com/watch?v=V1aW7gC2WfI

Russia Defaults On Dollar Debt - Serious Implications For Gold & Silver

MT:


We warned them here that US has a mix of options in its arsenal to wreck the economy of Russia. Russia is meant to settle its debt in USD but now offering Rubles to its creditors. US has been allowing Russia some degree of access to its frozen financial assets but the US has NOW decided a total blockage. Now, Russia can't pay in Rubles and this leads to the default.

Watch out as Russia credit rating starts to fall, which means Russia will have to pay heavy interest anytime it wants to borrow from any country. Russia is fighting economic war and conventional war at the same time, it will soon be sent back to the 300BC at this rate.

Your ignorance is bliss.

MT:


[s]We warned them here that US has a mix of options in its arsenal to wreck the economy of Russia. Russia is meant to settle its debt in USD but now offering Rubles to its creditors. US has been allowing Russia some degree of access to its frozen financial assets but the US has NOW decided a total blockage. Now, Russia can't pay in Rubles and this leads to the default.

Watch out as Russia credit rating starts to fall, which means Russia will have to pay heavy interest anytime it wants to borrow from any country. Russia is fighting economic war and conventional war at the same time, it will soon be sent back to the 300BC at this rate[/s].

Noise

lol, ode Oponu won sue.. who you go sue!

You obvious did not read your gbese contracts...

Appleyard:
The truth is, Russia don't need any damn rating to stay relevant. Just default and let the ediots and their own creditors settle their scores. After all, the whole world knows it's not your fault, and besides,Russia don't own much debt.

BTW. OP, this your headline is misleading. Why don't you wait until they're officially at default?

"No be your fault" does not settle debt. Russia is owing. And about the headline, you can safely advise the credit rating agency S & P Global whi stated that Russia has defaulted. Perhaps you know more than them.

Russia has defaulted on its debt big time and you are here saying they have not officially defaulted. Na wah for some people.

rottennaija:


Russia paid in rubles. Its left for them to go cash their money in American banks.

Is that the terms of contract ? Some people are just comedians

na wetin we hear oo

At the end of the day 483 billion dollars debt is people money. Jp morgan, pension funds, hedge funds, institutional investors in us and europe are shooting themselves thinking they are shooting Russia. Jp morgan and others might sue the us govt to collect their money

MT:


Is that the terms of contract ? Some people are just comedians

Understatement..

More like illiterates..

MT:


Is that the terms of contract ? Some people are just comedians

Which terms of contract? It's a normal thing. If I owe an international organisation money, I'll deposit my equivalent naira, they will take it to their bank and convert based on the money my country owns in the foreign reserve. I don't have to get the dollar equivalent to pay directly into their account.

I buy from aliexpress often. I pay in naira equivalent, they exchange it and take their dollars or yuan.

History555:
At the end of the day 483 billion dollars debt is people money. Jp morgan, pension funds, hedge funds, institutional investors in us and europe are shooting themselves thinking they are shooting Russia. Jp morgan and others might sue the us govt to collect their money

Leave them.

rottennaija:


Which terms of contract? It's a normal thing. If I owe an international organisation money, I'll deposit my equivalent naira, they will take it to their bank and convert based on the money my country owns in the foreign reserve. I don't have to get the dollar equivalent to pay directly into their account.

I buy from aliexpress often. I pay in naira equivalent, they exchange it and take their dollars or yuan.

You are not knowledgeable about how things work. Aliexpress has nothing to do with your naira. Central Bank of Nigeria settles your debt on your behalf and the CBN debits your naira denominated account in turn. CBN pays Aliexpress in USD. Don's assume knowledge of what you don't know. Sit this discourse out.

MT:


"No be your fault" does not settle debt. Russia is owing. And about the headline, you can safely advise the credit rating agency S & P Global whi stated that Russia has defaulted. Perhaps you know more than them.

Russia has defaulted on its debt big time and you are here saying they have not officially defaulted. Na wah for some people.

You are contradicting yourself. You said S&P placed them on 'selective default' because they chose payment via different means. And your post also said they have a 30 grace period to correct the anormaly. Now tell me; how is 'selective default' same as official default when a 30 day grace period is still pending? Admit your error and move on. Stop trying to be an island.

Abeg Putin Zombies

Even Russia is fighting tooth and nail to make sure they don’t default even threatening to sue

They know what it means to default

Now that they have defaulted, no one will flog them, but they are sinking their economy further

Trust of payment is the most important thing in international business and is enough to wreck it

Nigeria borrow to service her debt because it’s far worse to default

Take a look at what USA government says will happen to USA economy if they default and this have nothing to do with Russia

No wonder Nigeria is always borrowing to settle her debts

Fake news again
Una no Dey taya