According to the American financial corporation, the default in Russia will be similar to the situation in Venezuela, currenttime.tv reports with reference to Bloomberg.
Morgan Stanley predicts that Russia will default in mid-April when the 30-day grace period on dollar-denominated bonds maturing in 2023 and 2043 is over.
According to experts, Russia is similar to Venezuela because it also has significant oil assets that “will come into play” only after removing sanctions. In the event of a bond default and a court ruling, there is a risk that creditors would gain access to all assets currently frozen outside Russia, including foreign currency reserves.
Morgan Stanley notes that there is uncertainty about whether U.S. banks would be able to accept coupon payments from the Russian Ministry of Finance.
The growing financial crisis in Russia is linked to the Russian invasion of Ukraine and unprecedented Western sanctions. Belarus has also been hit by a new wave of sanctions for complicity in Russian aggression.
Earlier, Fitch Ratings downgraded Belarus’ long-term sovereign credit rating to CCC. The CCC level on Fitch’s scale means “significant credit risk, a very low margin of safety, a real possibility of default”.
belsat.eu
