Russia may have defaulted on debt for first time in 100 years: Moody’s

Russia may have defaulted on foreign bonds for the first time since the years following the Bolshevik Revolution of 1917.

This is the word from Moody’s credit agency after Moscow tried to repay his debt in rubles.

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Russia is required to repay its debt in US dollars, according to Reuters.

Russian President Vladimir Putin (Mikhail Klimentyev, Sputnik, Kremlin Pool photo via AP/AP Images)

Moscow made payments on April 4 on two sovereign bonds maturing in 2022 and 2042.

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Russia “can therefore be considered a default under Moody’s definition if it is not corrected by May 4, which is the end of the grace period,” Moody’s said in a statement Thursday.

Russia Moscow

A photo taken shows the Vodovzvodnaya Tower of the Kremlin (L) and the building of Russia’s Foreign Ministry. ((Photo by NATALIA KOLESNIKOVA/AFP via Getty Images) / Getty Images)

Another credit agency, Standard & Poor’sissued a downgrade of Russia exchange rate a week ago, raising the prospect of Moscow defaulting on its external loans for the first time in more than a century.

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It was at this time that S&P did not expect Russia to be able to convert rubles to dollars within the allowed 30-day grace period.

Russia has said it wants to service its debt, but sanctions imposed by Western countries have prevented it.

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At one point, the US Treasury blocked a transfer of $649 million to sovereign bondholders, preventing Russia from using any of its frozen currency reserves, according to a previous Reuters report.

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