The international rating agency Moodyʼs announced that Belarus defaulted on its foreign debts. On July 14, the grace period, when the country had to pay interest on loans, ended.
This is reported on the agencyʼs website.
On July 14, the grace period ended, during which Belarus had to pay $22.9 million for ten-year Belarus-27 Eurobonds. But the Ministry of Finance of Belarus decided to do it in the national currency, which is a violation of the terms of the contract.
"Repayment of foreign currency debt in Belarusian rubles is a default," the agencyʼs message emphasizes.
At the end of June, the Minister of Finance of Belarus Yuriy Seliverstov announced that in February the country paid the coupon in dollars on Eurobonds due in 2027. However, the Ministry of Finance later received an appeal from security holders who complained that the funds did not reach them, presumably due to sanctions, although they were transferred to the payment agent Citibank NA, which later refused to work with Belarusian Eurobonds altogether. After that, Belarus decided to pay the debts in Belarusian rubles — but this is a breach of contract, and therefore such payments are not considered to have been made.
- On June 27, the Moodyʼs rating agency announced Russiaʼs default on foreign loans. The default is largely symbolic, given that Russia cannot currently borrow abroad and does not need to, thanks to its rich revenues from oil and gas exports. But the current status will reduce the opportunity for loans in the future.