On Monday, Russia defaulted on its foreign debt for the first time since 1918, after missing payments on two foreign-currency bonds on Sunday.
According to the Wall Street Journal, Monday “marks the expiration of a 30-day grace period since the country was due to pay the equivalent of $100 million in dollars and euros to bondholders.”
As Barron’s noted, “the default is a logical consequence of freezing Russia out of the global banking system. The country has the money – oil and gas payments are still flowing in with little interruption – it’s just not allowed to transfer the funds to creditors.”
However, due in part to high oil prices, a strong ruble and lowering interest rates, Russia’s economy remains resilient despite the default.
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