Hank5/Getty Images
- Russia's central bank governor said Moscow isn't at risk of defaulting on its debt.
- The Kremlin has all the "necessary financial resources" to avoid default, Elvira Nabiullina said Thursday.
- The Bank of Russia also said it plans to use its digital ruble for international payments in 2023.
Bank of Russia Governor Elvira Nabiullina said Thursday the Kremlin isn't at risk of defaulting on foreign debt, despite warnings from around the financial industry.
"Russia has all necessary financial resources. There is no threat of default," she said, according to Tass.
That comes even as S&P downgraded Russia to a "selective default" earlier this month after the US blocked Moscow's dollar debt payments.
And on Wednesday, the Credit Derivatives Determinations Committee warned Russia's attempt to make payments on dollar bonds with rubles constitutes a potential default.
The Kremlin can still avoid default if it pays back bondholders by May 4 in dollars. Russia's foreign public debt as of February 1 was $59.5 billion, according to the Russian Ministry of finance.
But the West has frozen about half of Russia $640 billion in foreign-currency reserves. Nabiullina said Tuesday Russia would sue to regain access to frozen cash.
Meanwhile, she also pointed to Russia's digital ruble on Thursday and predicted transactions will be conducted in 2023, including for international settlements.
Moscow had previously banned cryptocurrencies but has since reversed course in light crippling sanctions as Russia continues its war on Ukraine. Crypto assets, including bitcoin, will be considered legal tender.
source https://markets.businessinsider.com/news/bonds/russia-debt-default-central-bank-digital-ruble-international-payments-2022-4