Russia Ruled in Potential Default Over Ruble Payment on Debt

  • CDS committee said a potential failure to pay event occurred
  • Russia on course for its first external default in a century
WATCH: Russia could have its first foreign debt default in a century after its payment of rubles on two dollar bonds was ruled as a “Potential Failure-to-Pay.” Source: Bloomberg
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Russia was judged to have breached the terms of two bonds by a derivatives panel, marking another milestone on the nation’s path to its first foreign debt default in a century.

The Credit Derivatives Determinations Committee said Wednesday that its payment of rubles on two dollar bonds was a “Potential Failure-to-Pay” event for credit-default swaps. The group, which includes Goldman Sachs Group Inc., Barclays Plc and JPMorgan Chase & Co., said the potential failure happened on April 4.