Russia says it made a payment to avoid default

[dalton99a]

https://www.cnn.com/2022/03/16/investing/russian-debt-payments/index.html

Russia says it made a payment to avoid default
By David Goldman, CNN Business
Updated 9:36 PM ET, Wed March 16, 2022

New York (CNN Business) Russia says it has ordered the $117 million in interest payments it owes Wednesday to be sent to investors, attempting to avoid its first international default in more than a century. But it's not out of the woods yet.

That's because the funds the country used to make the debt payments came from Russia's frozen foreign assets, sanctioned because of its attack on Ukraine — so it remains unclear whether investors will receive their money.

Anton Siluanov, Russia's finance minister, told state media Russia Today that the country had made good on its obligations to creditors. But the "possibility or impossibility of fulfilling our obligations in foreign currency does not depend on us," Siluanov said, according to RT, warning that the payment might not go through if the United States disallows it.

"We have the money, we made the payment, now the ball is in America's court," he said.

A spokesman for the Treasury said the United States would allow the payments to go through.

[SoonerPride]

1. Then they defaulted.

Their assets are frozen and not available for them to use.

They are in default.

[SoonerPride]

6. Then their assets are not frozen

What a crock of shit.

[rockfordfile]

10. If true.

then yes he lied.

[Cha]

16. You don't know that.. PJB is NOT

a "liar".

If you "hate to say it.." .. why say it?

[uponit7771]

19. This is false, please pay attention not *ALL* of Russia's money assets were frozen and frozen ...

... vs seized is two different things.

Russia can still pay in foreign currency its just they'll run out quicker than planned

[I_UndergroundPanther]

2. WTF

let it go through??!
They are called sanctions for a reason asshat.
And what about war crimes? I guess it means nothing if money's on the line. This is so hypocritical. Disgusting.

[vanlassie]

4. Wait. What??

“A spokesman for the Treasury said the United States would allow the payments to go through.”

[Grins]

18. Yes! Take their money!

It comes from Russia’s foreign reserves, the only currency they have of any value. And now they have LESS!

Bwahahahaha!

[I_UndergroundPanther]

7. Time

To get rid of american ogliarches too.

Fuck all the ogliarches.
Take the money away.

No more bullshit like this.

[Stinky The Clown]

8. A spokesman for WHICH Treasury? Ours or theirs???????

[dchill]

9. Maybe it's all one big crimey treasury.

[Beakybird]

11. This is unclear.

[ZellyCabMem]

12. Before We Overeact

The Supposed statement by a US Treasury Spokesperson is without acredidation or acknowledgement of an anonymous source. To me, it reads like a police report, wherein the the un-named witness backs up the police version of the cop's murder of the un-armed black person.

"The CI said she saw the decedent in possession of a gun. Though no gun was found at the scene, we believe Hunter Biden took it, secured it, and fled to China. Guilty."

[BlueIdaho]

13. More Russian Propaganda BS?

I think so.

[Cha]

17. Putin's Russia LIE?! And, yet

some believe it and saying PJB "lied".

I stand with Pres Biden over the Homicidal Psychopathic Liar.

[highplainsdem]

14. Financial Times tweet and article explaining what's going on:

Link to tweet

https://www.ft.com/content/6cfb5fef-4b61-4432-a5de-4486c95f1d19


See the second paragraph of the article. This is draining Russia's scarce foreign exchange reserves.

[BlueLucy]

24. Thank you so much for this! nt

[revmclaren]

26. Thank you.

[mathematic]

15. Freezing assets isn't seizing assets

Freezing assets means the owner can't move them around freely. You know, so they can't take their money to prevent it from being seized. In this case, they need permission of the US Treasury.

Apparently the US Treasury has decided that Russia paying back money to its western creditors is an acceptable use of the frozen assets. I agree. Why on earth should western banks be put at risk because russia invaded ukraine? The money is legally owed and I don't even know under what circumstances that money wouldn't be coming out of those frozen assets in any case, either now or later.

I do find it bizarre how many people in this thread are emphasizing that "biden lied" and comparing russian oligarchs, who were originally made wealthy by being granted state assets in the 90s and who gain and maintain wealth by being personally useful to the dictator of russia with american "oligarchs", who don't exist because we aren't an oligarchy.

[uponit7771]

20. +1, only about 50% of their rainy day was frozen but they'll be running out quick this payment

... was small in comparison to the one coming in Aprial

[PortTack]

21. +1000

[LetMyPeopleVote]

22. This payment does not count unless the investors have access to the money

This order is meaningless, and Russia is still in default

[Tactical Peek]

23. Bloomberg reports no payments received by investors, default, grace period starts

https://www.democraticunderground.com/10142889719

"As the deadline for coupon payments on Russia’s dollar bonds drew to a close Wednesday, there were no signs that holders of the debt had received their cash.

Bondholders in Europe and one in the U.S. said they hadn’t received cash in dollars at the close of business in their respective countries, and weren’t aware if payments were made in either the greenback or rubles into accounts in Russia."

[eShirl]

25. Gee Vlad, we'd let the money go through but we just so busy rn w this WAR you started.

Maybe if you do a complete and immediate withdrawal we can start to think about it.
No guarantees.

[lpbk2713]

27. $117M is nothing next to the reparations Russia will have to pay.

Link: https://www.reuters.com/world/ukraine-economic-adviser-says-war-damage-tops-100-billion-so-far-2022-03-10/

Ukraine's top government economic adviser Oleg Ustenko said on Thursday that invading Russian forces have so far destroyed at least $100 billion worth of infrastructure, buildings and other physical assets.


... and that was a week ago.