May 24, 2022

Dubai Week

Complete Dubai News World

Russia pays foreign journalists in rubles and official fees

Russia pays foreign journalists in rubles and official fees

According to a recent decree signed by President Vladimir Putin on Saturday, the Russian government and companies will allow foreign lenders to pay the ruble in local currency.
The decree sets out provisional rules for sovereign debtors and Russian companies to pay their arrears to lenders from countries that “engage in hostile acts” against Russia, its companies and citizens from the list prepared by the government within two days.
Meanwhile, Russian institutional securities, denominated in foreign currency, have plummeted in recent days as investors weigh in on the impact of sanctions imposed on the country in the wake of Russian military action in Ukraine. The Russian government has responded to those restrictions by significantly restricting access to foreign currency, which restricts the securities’ interest and ability to receive principal payments.
According to the decree, if the ruble and the official rate of the Central Bank of Russia are paid, they will be considered executed. Borrowers can ask the local bank to set up a special ruble account in the name of foreign debtors, while payments from domestic borrowers are settled by Russian depositors. This rule applies to amounts of more than 10 million rubles ($ 81,900) per month.
Due to Russia’s capital restrictions and sanctions, the new measure has sparked debate as to whether the new measure would default on payments in rubles, which could put these bonds outside the realm of debt repayment. There is no option to pay in bonds and rubles due on March 16th.
(Bloomberg)