Russia’s failure to pay $1.9 million in accrued interest on a dollar bond will trigger payouts potentially worth billions of dollars, committee determines : worldnews

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Register now for FREE limitless entry to Reuters.comNEW YORK/LONDON, June 1 – Russia’s failure to pay $1.9 million in accrued curiosity on a greenback bond will set off payouts doubtlessly price billions of {dollars}, a panel of traders decided on Wednesday, because the nation teeters on its first main exterior debt default in over a century.

A Credit score Derivatives Determinations Committee overseeing Europe, whose members are banks and asset managers, mentioned on its web site on Wednesday that it voted ‘sure’ to a query on whether or not a “Failure to pay credit score occasion” occurred with respect to Russia.

The main target for a wider default is now on a coupon fee due June 24 on a bond issued in 1998.Russia has beneath $40 billion of worldwide bonds excellent and near $2 billion in funds is due by way of year-end.

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