Description: Credit rating agencies have indicated that payments in a currency different from the one the debt was sold in would count as a default once the grace period expired.

Source: NYTimes.com

Date: Apr 06, 2022

Link: https://www.nytimes.com/2022/04/06/business/russia-eurobonds-rubles.html

Questions for discussion:

• What is the issue about paying in an alternative currency?
• How should this settlement of accounts be handled, in your opinion?
• What can happen in financial markets if this issue isn’t resolved satisfactorily?
• Do you think it will?