Bloomberg: Russia defaulted for the first time in 100 years

Bloomberg: Russia has defaulted for the first time in 100 years

Russia has defaulted on sovereign debt. The deadline for paying $100 million in coupons expired on the night of June 27, Bloomberg reported.

– The grace period for paying almost $100 million in late payments on government bonds expired Sunday, and in case of default, the deadline considered a default event, the report said.

The experts noted that the default is mostly “symbolic and means little to Russians”, who are “and are dealing with ambiguous inflation and the worst economic contraction in years ”.

The agency stressed that the situation is similar to what happened in 1918, when the Bolsheviks refused to pay the tsarist debts.

Default is the failure of the debtor to pay the debt. The declaration of default by the state reduces its credit ratings – it becomes difficult or impossible for the country to attract new loans, as a result, the limited infusion of external capital hinders the development of the economy.

Earlier, the KP in Ukraine gave answers to the main questions regarding the default in Russia: why it has come and what it means for the Russians.

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