In Reversal, Russia Makes Bond Payment in Dollars to Avert Default
By Alexander Osipovich and Alexander Saeedy , The Wall Street Journal [4/29/2022]; see also image (not from article) from Russia said it had made payments on two dollar-denominated bonds, potentially staving off a default on the country’s foreign debt . The nearly $650 million in payments were made in dollars to a London branch of Citigroup Inc. that processes payments on behalf of bondholders, Russia’s finance ministry said Friday. The money from Russia’s bond payments must land in bondholders’ accounts by Wednesday, the end of a 30-day grace period after Russia missed a payment in early April. Otherwise, the country can officially be called in default by its creditors. The move to pay in dollars marked a reversal, as Russia’s finance ministry had earlier insisted on making the bond payments in rubles. Western sanctions imposed over Russia’s invasion of Ukraine have complicated the country’s efforts to make sovereign bond payments. In early April, th...