Russia is on the verge of bankruptcy due to non-payment of foreign debt.
This claim was made in media reports.
According to a Bloomberg report, for the first time since the 1917 revolution, Russia failed to repay its foreign debt on time, which could lead to it being technically bankrupt, but will be formally announced by international rating agencies.
Russia was due to pay 10 100 million in interest on 2 euro bonds on May 27, but failed to do so, and failed to do so in the additional 30 days that ended on the night of June 26.
Russia wanted to pay the money, but sanctions over the Ukraine war prevented it from doing so.
Russia’s finance minister has called the situation “ridiculous.”
Russia faced this situation in May when the US Treasury Department’s foreign asset agency, OFAC, effectively blocked payments in Moscow dollars.
If Russia is declared bankrupt by international organizations now, it will be symbolic because Russia is exporting huge quantities of crude oil and gas, but it may face a difficult situation in the future.
Russia offered to repay the loan in rubles, but the lenders refused.
Russian Finance Minister Anton Selyonov said last month that “we have the money and we are ready to pay it, a situation artificially created by a country that has no effect on the living standards of Russian citizens.” shall be.
Russia has اوپر 40 billion in foreign debt and سے 640 billion in foreign currency and gold reserves in the Russian treasury before the start of the Ukraine war, but most of it was outside Russian territory and is now frozen.
Russia was last declared bankrupt on the eve of the 1917 revolution for non-payment of foreign debts, more than a century ago.
He went bankrupt due to local debts in the late 1990s, but with international aid he was able to overcome the situation.
If a country is declared bankrupt, it will not be able to obtain loans from the bond market until it repays the loans and restores investor confidence in the government.
But in the current context, Russia is already cut off from the Western economic system, so it will not be easy for it to get out of the current situation.