Payday in Moscow – Investors are waiting for interest payments

Frankfurt It is only a relatively small sum, but it is crucial for Russia’s fate on the capital market: interest on two Russian dollar government bonds is due on Wednesday. The volume is 117 million dollars. Theoretically, Russia also has enough money – but there is still no word that investors have received anything.

It is very likely that Russia will not pay the interest properly. If at all, payments are to be expected in the domestic ruble, as Russia can hardly access its foreign exchange reserves.

A payment in rubles would be tantamount to a technical default, the rating agency Fitch said late Tuesday. However, Russia then has 30 days to properly make up the payment in dollars before the official so-called “default” occurs. The rating agencies S&P Global and Moody’s have made similar statements.