Here is a summary of the key moments that have led to Russia's first foreign debt default since 1918.
On May 3 though, shortly before the payment was due, the Kremlin U-turned and paid in dollars.On May 11, sharp-eyed creditors spotted that Moscow had failed to add $1.9 million of extra interest that had built up on bonds that only got paid in their grace periods rather than on time.
, that credit default swap insurance process had to be halted as it was no longer clear what to do with the bonds involved. “It is a bit like if your house burns down and the insurance company turns around and claims it was the wrong kind of fire,” said Joe Delvaux, emerging markets distressed debt portfolio manager at Europe’s largest fund manager Amundi. “The reality is that these sanctions are a shock to the system.
However, veteran global policymakers involved in the process say the sanctions are unprecedented but fully justified. “They were very significant actions that responded to the magnitude of the actions that Russia undertook,” Agustin Carstens, the head of the world’s central bank umbrella body, the Bank for International Settlements, said.
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