“The final decision has not yet been made, but I do not think this will continue,” Yellen said of the May 25 exemption. The minister is visiting Germany, where the G7 finance ministers have met.
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Russia does not have access to $ 315 billion in foreign exchange reserves. However, when the bonds were repaid in dollars, the money was raised and paid for. Although originally sought a repayment in rubles.
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According to the US Treasury Department, the country paid $ 565 million for a bond due this year and $ 84 billion for a Eurobond due in 2024.
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If the bond waiver expires, Russia will probably not be able to repay the debt and will become insolvent, as would be the first time since the Bolshevik revolution more than a hundred years ago.
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“If Russia does not find a way to make these payments and becomes insolvent, I do not think that will significantly change the Russian situation, because the country is already cut off from the global capital markets,” Yellen said.
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