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Russia Has Just Over a Day to Pay Two Foreign Bonds and Dodge Default

  • Sanctions have complicated Russia’s dealings with creditors
  • 30-day grace period on two debt payments runs out on May 4
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Russia May Avert Default as Clearinghouse Processes Funds

Russia has just over a day to get payments on two foreign bonds to investors and dodge a default in a closely watched struggle with sanctions.

A grace period to transfer $650 million in coupon and principal payments expires on May 4 after the funds were initially blocked in early April. Russia’s first foreign debt default in more than a century had looked all but certain until a shock announcement late last week by the Russian Finance Ministry that the cash was finally moving through the financial system.