{"id":13001,"date":"2022-06-27T18:10:44","date_gmt":"2022-06-27T18:10:44","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/reports-claim-russia-defaulted-on-foreign-debt-for-the-first-time-in-a-century-kremlin-disagrees-and-says-it-paid-economics-bitcoin-news\/"},"modified":"2022-06-27T18:10:44","modified_gmt":"2022-06-27T18:10:44","slug":"reports-claim-russia-defaulted-on-foreign-debt-for-the-first-time-in-a-century-kremlin-disagrees-and-says-it-paid-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/reports-claim-russia-defaulted-on-foreign-debt-for-the-first-time-in-a-century-kremlin-disagrees-and-says-it-paid-economics-bitcoin-news\/","title":{"rendered":"Reports Claim Russia Defaulted on Foreign Debt for the First Time in a Century, Kremlin Disagrees and Says It Paid \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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According to reports, the Russian Federation has defaulted on its foreign debt for the first time since 1918. Bondholders told the press that they had not received payments from the transcontinental country. However, Russia\u2019s finance ministry denies the allegations and says the country made the payments via the Euroclear monetary system.<\/strong><\/p>\n

Russia Is Accused of Foreign Debt Default, Moscow\u2019s Finance Ministry Claims the Country Paid Bondholders<\/h2>\n

Media reports<\/a> are claiming<\/a> that Russia has defaulted on its foreign currency debt for the first time in more than 100 years. Financial sanctions against the transcontinental country have made it difficult for Russia to access the international payment systems. On Sunday, a $100 million interest payment was allegedly missed after the U.S. Treasury blocked a method that allowed the Kremlin to pay its debts by converting rubles.<\/p>\n

Now that the grace period is over, bondholders will have to agree on whether or not it is officially a default against the loans. Reuters claims Russia\u2019s move to not pay is \u201can act of political theatre at bondholders\u2019 expense\u201d and default makes them \u201cpolitical stooges.\u201d The Kremlin, however, claims otherwise and says that the default is a \u201cfarce\u201d because Western sanctions blocked the country\u2019s payments. Russia\u2019s finance ministry said it had made the payments to bondholders denominated in euros.<\/p>\n

Russia Blames Financial Blockade \u2014 Kremlin Spokesperson Says It\u2019s \u2018Not Our Problem\u2019<\/h2>\n

The Russian government entity says the default claims are artificial, it has the funds to pay and sanctions are the only reason why institutions do not have the ability to accept funds from the country. The last time Russia defaulted on foreign debt was in 1918 during the Bolshevik Revolution. An NBC report<\/a> has quoted a Kremlin spokesperson, Dmitry Peskov, who told the reporters that the payment was blocked by Western sanctions and because of this fact, Peskov said it\u2019s \u201cnot our problem.\u201d<\/p>\n

Reports<\/a> further show that the Russian Federation claims it leveraged its onshore National Settlement Depository (NSD) and the Euroclear monetary system. The Kremlin insists that despite the financial blockade it had fulfilled its obligations to foreign investors. Reuters reports<\/a> that Russia\u2019s President Vladimir Putin codified a decree that picks specific banks to handle the bondholder payment obligations. Furthermore, Putin aims to travel to Tajikistan on Tuesday as it will be the president\u2019s first trip since the start of the ongoing war.<\/p>\n

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\nTags in this story
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1918<\/a>, Bolshevik Revolution<\/a>, Bond Defaults<\/a>, debt payments<\/a>, Default<\/a>, economics<\/a>, Euroclear<\/a>, foreign debt<\/a>, Interest payments<\/a>, Kremlin’s statements<\/a>, missed payments<\/a>, Moscow<\/a>, NSD<\/a>, Payments<\/a>, Russia<\/a>, Russia’s President<\/a>, Russian Debt<\/a>, U.S. Treasury<\/a>, Vladimir Putin<\/a><\/div>\n<\/div>\n

What do you think about the media claims that say Russia defaulted on its foreign debt? Do you agree with the Kremlin\u2019s statements? Let us know what you think about this subject in the comments section below. <\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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