JRL NEWSWATCH: “A Russian Default Is Looming. A Bitter Fight Is Likely to Follow.” – New York Times

File Photo of Assorted U.S. Cash, adapted from image at tsa.gov

“The ultimate arbiter of a sovereign default is an open question but markets may have the final word.”

Russia is ambling toward a major default on its foreign debt, a grim milestone … not seen since the Bolshevik Revolution … File Photo of Revolutionaries Marching in Moscow in 1917, adapted from image at state.govrais[ing] the prospect of years of legal wrangling and a global hunt … for Russian assets. The coming fight … probably pit[ting] Russia against big investors [globally] … raises murky questions over who gets to decide if a nation has actually defaulted in the rare case where sanctions have curbed a country’s ability to pay …. European Portion of Commonwealth of Independent StatesRussia does not appear likely to take the declaration of a default lightly. … [I]t would raise Russia’s cost of borrowing for years … effectively lock[ing] it out of international capital markets, weighing on an economy … already expected to contract sharply …. It would also be a stain on … [Putin’s] economic stewardship … underscor[ing] … costs Russia … incur[s] from its [Ukraine] invasion …. “

Click here for: “A Russian Default Is Looming. A Bitter Fight Is Likely to Follow. The ultimate arbiter of a sovereign default is an open question but markets may have the final word.” – New York Times/ Alan Rappeport


 

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