Putin decrees foreign bond holders to be paid in rubles

[Yo_Mama_Been_Loggin]

Russia and Russian companies will be allowed to pay foreign creditors in rubles, under a decree signed by President Vladimir Putin on Saturday, as a way to service debt while capital controls remain in place, Bloomberg reported Sunday.

The decree sets up temporary rules for sovereign and corporate debtors to make payments to creditors from “countries that engage in hostile activities” against Russia, its companies and citizens.

The prices of Russian corporate bonds denominated in foreign currencies have plunged in recent days after sanctions were imposed on the country in the wake of its invasion of Ukraine. The Russian government responded to the sanctions by reducing access to foreign currencies which could restrict the ability of bondholders to receive interest and principal payments.

Separately, clearing houses Clearstream and Euroclear stopped accepting the ruble as settlement currency.

https://www.marketwatch.com/story/putin-decrees-foreign-bond-holders-to-be-paid-in-rubles-11646604607

Monopoly money might be worth more.

[Wingus Dingus]

1. How about Schrute Bucks? Or Stanley nickels?

[ProudMNDemocrat]

3. I think I have some Wooden Nickels lying about...

I collected from Bowling alleys when I would roll a Turkey(3 strikes in a roll) in League play.

[ProudMNDemocrat]

2. A roll of toilet paper is worth more than The Russian ruble.

Talk about a shitty situation you have there, Putie!

[Achilleaze]

4. Pooty may be Russian, but he does business like a Republican

[BlueIdaho]

5. This is a dead end strategy.

It may work one time, but who the hell is going to extend credit knowing they will get a hind full of shit as payment? Dear Russia, eat rocks and polish off those concrete bicycles.

[GregariousGroundhog]

6. This may be a dumb question, but won't creditors be able to pursue claims in U.S. and European court

I seem to remember Argentina's bonds ending up in U.S. courts. Will a similar thing end up here?

[C_U_L8R]

7. Your money's no good here, Putin.

No, seriously.

[jimfields33]

9. The countries that are owed money by Russia will either haven to

accept 2 cents on the ruble or dollar or get nothing. I know we owe Russia money, but hopefully they don’t owe us any.

[Javaman]

8. in russia you drive a panel van full of cash just to buy a coffee.

why does vlad think that the lenders will except his worthless money as payment?

he's grasping.

[lpbk2713]

10. Might as well try to unload them somewhere.

Pretty soon they won't be worth the paper they're printed on.

Maybe Putin could increase their value if he printed a portrait of Jefferson Davis on them.

[LiberalFighter]

11. Doesn't that make Russia finances more riskier?

[Torchlight]

12. It's as though he's green-lighting the conditions for hyperinflation.

This will indirectly compel even more citizens to avoid currency.

Bolivia, 1984
North Korea, 2010
Austria, 1922
Venezuela, 2019
Hungary, 1946
Brazil, 1990

There are indicators, and there are leading indicators. Putin appears to be grasping at the leading indicators and tying to move them in such as way as to serve his own narrative, which seems doomed to fail given historical precedent.

[Swede]

13. Proceeds to shoot other foot.

nt