Belarus steps towards default: pays ruble coupon on Eurobonds

Belarus steps towards default: pays ruble coupon on Eurobonds

The Ministry of Finance of Belarus for the first time paid a coupon on Eurobonds maturing in 2027 in the national currency – Belarusian rubles. The state cannot make a payment in the issue currency due to sanctions, according to the website of the Ministry of Finance.

Belarus steps towards default: pays Eurobond coupon in rubles

“Payments on Eurobonds of the Republic of Belarus due June 29, 2022 (Belarus-2027) for a total amount of $22.9 million equivalent were made in accordance with the new procedure”, – the ministry said.

This new procedure provides for the opening of special accounts with Belarusbank, access to which the payment agent will receive – London Citibank.

The payment of foreign currency debt in Belarusian rubles will trigger the default procedure after the expiration of the preferential period.

Five issues of Belarusian Eurobonds totaling $3.25 billion are in circulation. The last time Belarus entered the Eurobond market was in June 2020. In August, Belarus must pay a coupon on four bond issues at once for a total of almost $85 million.

Source: LIGABusinessInform