Two US banks suspended operations on servicing Russia's State Debt
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According to Bloomberg, the world's leading banks - US JPMorgan Chase and Goldman Sachs - have ceased operations on fulfilling Russia's debt commitments.
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Two US banks suspended operations on servicing Russia's State Dept.
According to Bloomberg, the world's leading banks - US JPMorgan Chase and Goldman Sachs - have ceased operations on fulfilling Russia's debt commitments.
The US Treasury previously declined to extend a broad license that permitted Russia to service the foreign debt while under sanctions. Russia's Finance Ministry, for its part, stated that, despite tighter external constraints, the country will continue to meet its public debt commitments, with payments paid in rubles.
Read more: Russia will pay its foreign debt in rubles
Minister Anton Siluanov stated that a probable notice of a technical default on Russia's public debt owing to US actions would have no impact on Russians' lives.
One of the banks released a statement stating that “consistent with the updated OFAC guidance and Goldman Sachs’ wind-down of activities in relation to Russia, the firm will no longer be conducting certain client-related market-making activities regarding Russian entities."
According to the report, banks were still pairing sellers who wanted to get out of debt with prospective purchasers this month.
