Is Russia on the brink of bankruptcy? And what happens when a country goes bankrupt?

In principle, Russia should have paid two coupons today on two bonds issued in US dollars. In other words: paying off a debt with an American bank, in dollars. “The Russians have quite a bit of currency reserves,” says Joly, “but the Western currencies are blocked.” This means that Russia cannot access its dollars, which it needs to pay the debt. In addition, Russia has been cut off from Western capital movements due to the sanctions of the West. The answer of the Russians? Pay off debts in rubles. But is that just possible? Eric Joly explains more in the video below.

–