Russia Avoids Default Paying $102 Million in Coupon Payments

Russia has made $102 million in interest payments servicing its foreign debt securities despite complete financial isolation from rest of the world.

The Finance Ministry said it transferred the funds to the National Settlement Depository in Russia, from where the coupon payment on the bonds maturing in 2035 is due to be distributed to investors.

Capital controls and restrictions on the NSD’s accounts with the world’s biggest settlement systems have complicated and delayed the arrival of funds on previous payments.

The Russian government has so far avoided default on its bonds, despite serious concerns of defaults earlier raised by top credit-rating agencies.  By transferring the cash, the Finance Ministry has performed its obligations under the bond terms “in full,” it said in a statement Tuesday.