Russia defaults on foreign debt for the 1st time since 1918 – Bloomberg

Russia defaulted on its foreign-currency sovereign debt for the first time in a century, the culmination of ever-tougher Western sanctions that shut down payment routes to overseas creditors, Bloomberg reported on Monday.

Bloomberg says that for months, the country found paths around the penalties imposed after the Kremlin’s invasion of Ukraine.

“But at the end of the day on Sunday, the grace period on about $100 million of snared interest payments due May 27 expired, a deadline considered an event of default if missed.”

Bloomberg stated that It’s a grim marker in Russia’s rapid transformation into an economic, financial and political outcast.

“The nation’s eurobonds have traded at distressed levels since the start of March, the central bank’s foreign reserves remain frozen, and the biggest banks are severed from the global financial system.”

 

Russia invaded Ukraine back on February 24 of this year.

Hostilities have been in progress since then.