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Russia’s Bond Payment Is in Limbo as Countdown to Default Begins

  • Nation says payment order made to correspondent bank March 14
  • Moscow has 30 days to pay or risk first FX default in century
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Russia Claims Bond Coupon Payment Has Been Made
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Russia’s Finance Ministry said that it has sent payment orders for the interest on its dollar bonds to its correspondent bank, giving incremental details on a debt settlement that has come to exemplify how Moscow plans to handle its future relations with creditors. 

In a statement Thursday, the Finance Ministry said it had sent the order for a $117 million interest payment on March 14 to a correspondent bank that it didn’t identify, adding that it would issue a separate comment about whether the paying agent, Citibank’s London branch, has received the payment. The bank declined a request for comment. The ministry has said it would first try to make the payments in dollars and then use rubles if that fails. So far, bondholders in Europe have received no sign of the funds.