Moscow, For the first time in its 104-year history, Russia has declared a foreign debt default. The incident is a testament to the impact the war with Ukraine has had on the Russian economy over the past four months.
Following the war with Ukraine, all Western countries, including the United States, have banned trade with Russia. Russia has said it will use its local currency, the ruble, after a ban on dollar transactions in global markets, but other countries, under US influence, have refused.
Russia had to pay ૧૦ 100 million in interest on foreign debt on May 9, with a one-month grace period. That time ended on Sunday, June 9th. Thus, technically, Russia defaulted on the loan, the first such incident since 1917.
Russia’s bond market, which has endured all sorts of sanctions since the war, has been under pressure since March and its central bank’s foreign exchange reserves have also stagnated. What is even more challenging for Russia, experts say, is that its inflation rate has doubled and the economy is weakening.
This default has been falsified by Russia. Russia says it has enough funds to pay any bills but is being forced to default.
Last week, Russia said it wanted to repay સરકારી 60 billion in government debt in rubles because
Western countries have banned trading in the dollar. Russia says Western countries have tried to force it to default. It is a very bad situation if one government is trying to make another government a defaulter. SS2KP