Russia avoided default on Eurobonds

Russia avoided a default on Eurobonds: investors began to receive payments in dollars on two issues of sovereign bonds, writes Bloomberg. The grace period for them ended on May 4.

This morning, the agency wrote that at least part of the payments (totaling $650 million) were successfully processed by clearing operators, and then - that their banks began to transfer money to investors. Russia was separated from the default by 11 hours, notes Bloomberg - the country eventually found domestic currency resources. US officials have said they will allow debt service from this source to deplete Russia's foreign exchange reserves.

The next critical date is May 25, when the US OFAC's current general license to receive such payments from the Bank of Russia, the NWF and the Treasury expires. May 27 is the due date for two issues of government bonds maturing in 2026 and 2036. But for them, the repayment terms are softer: one allows payment in rubles, the other - payment in foreign currency outside the United States.

About how Russia tried to avoid default, and what would have been the consequences if it had not been avoided, The Bell spoke in detail here .