Siluanov refused to consider payments on external public debt in rubles as a default
Minister of Finance Anton Siluanov refused to recognize the payment of the state debt denominated in foreign currency in rubles as a default on state obligations. His words lead TASS.
“No, it doesn’t. The Russian Federation does not refuse to fulfill its obligations under government securities. And as a responsible borrower, he is taking all possible steps to bring the funds to all investors in full,” Siluanov answered the question of whether the payment of the foreign currency public debt in rubles means a default.
According to him, the Ministry of Finance was forced to switch to servicing Eurobonds in the national currency solely because of the refusal of foreign counterparties to make payments in dollars. Moscow considers this circumstance to be force majeure.
“There is every reason to believe that the creation of artificial barriers for the Russian Federation to service the state external debt is necessary in order to hang the label “default”. You can declare anything, and try to hang a label. But everyone who understands understands that this is not a default,” Siluanov concluded.
June 22 President Vladimir Putin signed a decree allowing servicing external public debt in rubles. To do this, the Ministry of Finance will be able to open ruble accounts of the “I” type in depositories. They will be credited with funds in rubles at the rate of the currency in which the obligations are nominated on the day of payment.