Croatian Financial System Shielded from Likely Russian Bankruptcy

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As Poslovni Dnevnik/Tomislav Pili writes, Russian bankruptcy, which is increasingly likely to occur soon, will not be felt by the Croatian financial system, and global finances should not be shaken by such a scenario either, according to Croatian analysts, Croatia News reported. After announcing on Monday that the Russian Ministry of Finance will pay out interest to foreign investors in rubles instead of dollars, the story coming out of Moscow altered Russia's state treasury has announced an order has been sent to pay 117.2 million U.S. dollars in coupon interest on Eurobonds it has to pay out to foreign investors this week, dispelling any speculation that it won't be able to meet these financial obligations. This is what's known as coupon interest on Eurobonds maturing in 2023 and 2024, and Moscow is thus preparing to settle its first foreign debt obligation since the imposition of harsh sanctions following the Russian invasion of Ukraine. Reuters noted that it couldn't immediately confirm the information on the preparation of these coupon interest payments with the bondholders. The payment of coupon interest in rubles would mean that Russia wouldn't be able to settle its obligations under the bond, so it would have to repay the entire debt. Russia has to settle obligations on 15 bonds issued on international markets worth about 40 billion US dollars, according to Reuters. Approximately half of these bonds are owned by foreign investors. Read more.