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Russia Defaults on Foreign Debt for First Time Since 1918


Brishka
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It’s a grim marker in the country’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. 

https://www.bloomberg.com/news/articles/2022-06-26/russia-defaults-on-foreign-debt-for-first-time-since-1918

Edited by Brishka
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But, but...The tankies on ATRL tell me that the sanctions have zero effect 😢

Edited by ontherocks
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Quote

 shut down payment routes to overseas creditors

Ah. Okay then.

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6 minutes ago, ontherocks said:

But, but...The tankies on ATRL tell me that the sanctions have zero effect 😢

Their economy is ******. They will start feeling this in a few months, then it will just continue to get worse (and worse) for years. Their GDP is expected to record the biggest drop since 1994 in 2022, but it will only get worse from there. 

 

7 minutes ago, Shame♥ said:

Ah. Okay then.

Doesn’t matter if it’s forced default - it’s just a new source of risk that will be baked into their cost of debt

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Not a real default cause Russia can afford to pay but is not allowed to. Russia's credit rating won't suffer if things ever normalised. So ye, not much to celebrate here. He'll just keep the money to himself 

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7 minutes ago, Brando said:

Not a real default cause Russia can afford to pay but is not allowed to. Russia's credit rating won't suffer if things ever normalised. So ye, not much to celebrate here. He'll just keep the money to himself 

 

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Posted (edited)
15 minutes ago, Brando said:

Not a real default cause Russia can afford to pay but is not allowed to. Russia's credit rating won't suffer if things ever normalised. So ye, not much to celebrate here. He'll just keep the money to himself 

Consequences of this default are likely long term rather than short term.

 

No, things won't get "normalized." Germany, the weakest link within the G7, is weaning itself off russian energy at a rapid pace, so there will be zero incentive for Germany to push for this normalization in the future. India and China won't be able to bail them out. Russia's economy is absolutely doomed in the long term.  

Edited by Brishka
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Good. Let this be a stark warning for all other economies that even try imperialism through conquest by military means.

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another nuke threat incoming. It's been like 3 days since last one  :clap3:

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35 minutes ago, CakeLikeLG said:

another nuke threat incoming. It's been like 3 days since last one  :clap3:

 

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