Russia Avoids Debt Default on Deadline

Russia avoided defaulting on its government debts by completing required payments in US dollars just before the final deadline on March 4.

An unnamed US official, quoted in a BBC report, admitted that payments have been made.

The US official revealed that Russia was “forced to choose between draining their remaining valuable dollar reserves or new revenue coming in, or default”. 

Russia made its debt payment using funds located outside the US or other partner jurisdictions, the US official added. 

Russia’s Finance Ministry previously declared that it has all the resources it needs to meet its responsibilities, according to a different report by the Russian News Agency (TASS).

Bank of Russia head Elvira Nabiullina said any default is out of the question.

However, Nabiullina admitted that “there are difficulties in the payments”. 

Based on Russian Finance Ministry data released by TASS, Russia’s external public debt was $59.5 billion as of February 1, 2022, including debt on external bond loans of $38.97 billion.

The Russian Federation currently has 15 active bond loans, with maturities ranging from 2022 to 2047.

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