ON WEDNESDAY, Russia owes a $117million (£89million) payment on its debts, but as sanctions bite, this is looking exceedingly unlikely to be able to happen. A look at history tells us what might happen next.
Last week, the World Bank’s chief economist, Carmen Reinhart, warned that Russia was “mightily close” to defaulting on their debt. The next instalment of payments on two dollar-denominated bonds is due on Wednesday, March 16, though a 30-day grace period will follow, meaning the worst of the fallout might not be seen for another month – but when it does, analysts are warning of a knock-on effect that will ricochet around the globe.
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