Russian bond investors get their payouts

Russia's bond coupon payment of $ 117.2 million reached investors. The Ministry of Finance of Russia announced that the payment in question had reached the intermediary bank Citibank.

Concerns that Russia would default dissipated after the coupon payment reached investors.

After the Russian Ministry of Finance announced that the payments had reached the intermediary bank Citibank, it was stated that the payments had reached the investors.

According to Bloomberg, portfolio managers in the UK, Germany and the US indicated that the coupon payment for the two Russian eurobonds due on Wednesday was made on Friday.

while the process on the payment of $ 117.2 million has been completed, Russia has an interest payment of $ 488 million in the next 10 weeks, according to Bloomberg data. For the next month, there is a redemption of $ 2 billion.

Warnings of default had raised concerns

After statements that Russia would make coupon payments on bonds to investors of 'non-friendly' countries in rubles, credit rating agencies announced that paying in local money would mean default.

The US Treasury also announced on Wednesday that sanctions imposed on the Bank of Russia and other institutions will not prevent the country from paying debts on the dollar at least until May.

S&P has taken Russia's credit rating to a negative level and noted that they can default on the credit rating “if Russia cannot fulfill its debt obligations as understood and if the institution decides that it cannot make these payments within an october period of time”.

Emphasizing that Russia is struggling to transfer payments to investors with dollar-denominated bonds in its statements, S&P noted that there may be similar problems with currency-based payments to be made in the coming weeks.