NEW YORK (Reuters) – Russian dollar bonds fell sharply on Monday, following steep gains late last week after the Russian finance ministry said it had made overdue payments which had threatened to push the country into default.
Russia’s finance ministry said Friday it had managed to pay, in U.S. dollars, $564.8 million in interest on a 2022 bond and $84.4 million on a 2042 bond, despite having vowed to make those payments in rubles.
The government’s foreign bonds remain deep into distressed territory, with most trading under 30 cents on the dollar.
A bond maturing in 2026, which has a payment due on May 27, was down 5 cents at 28, after having risen 13 cents on Friday.
A 2029 bond dropped 7 cents to 22 cents after rising from 14.5 cents to 29 cents on Friday. This bond’s next coupon payment is due in September.
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(Reporting by Rodrigo Campos; Editing by Richard Chang)