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Russia Skirts Nearer Default After Dollar Payment Blocked

  • Nation says foreign banks rejected $649.2 million payment
  • Default probability over a year rises to 99%, CDS data show
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Russia Says Foreign Banks Rejected $649.2M Bond Payment
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Russia slipped closer to a technical default after foreign banks declined to process about $650 million of dollar payments on its bonds, forcing it to offer rubles instead.

While the finance ministry said that it “considers it fulfilled its obligations in full,” neither of the securities involved allowed payment in rubles, according to bond documents. Both notes have a 30-day grace period, data compiled by Bloomberg show.