The Kremlin’s latest sovereign bond coupon payments were halted by the US Treasury on Monday night, pushing the country closer to a historic default if it fails to pay within the grace period. Russia was due to make a principal payment of more than $550m (£419m) on a maturing bond as well as an $84m interest payment on Monday.
The move, which prevents Russia from making the payments in dollars through US banks, is designed to force Russia to use up the remaining dollars to which it still has access.
The move, which prevents Russia from making the payments in dollars through US banks, is designed to force Russia to use up the remaining dollars to which it still has access.
Russia will simply tell bond holders they ordered the payment to be made from money held by US banks and the US govt prevented it. Therefore, their problem is with the US govt and the banks, not Russia. Russia does not control what the US govt or US banks do.
Russia will simply tell bond holders they ordered the payment to be made from money held by US banks and the US govt prevented it. Therefore, their problem is with the US govt and the banks, not Russia. Russia does not control what the US govt or US banks do.
Try blaming the bank with your mortgage company and see how it works.
Russia can tell them whatever it wants, but the bottom line is it is Russia’s obligation to make the payment.
Russia can tell them whatever it wants, but the bottom line is it is Russia’s obligation to make the payment.
Well, the Russians could make a force majeure argument, a force beyond Russia’s control, the sanctioning countries, prevents payment, which would suspend or void the contract.
Try blaming the bank with your mortgage company and see how it works.
If the bank refuses to honor the check issued to the mortgage company (or other payment authorized) AND there is enough money in your account to pay the bill, then the problem is NOT with the payer. It is with the bank refusing to honor the payment directions.
If the payment was denied due to NSF, then your claim could work. But there IS enough money in the account to pay the bill. The payer has NOT refused to pay. To the contrary: The payer HAS the money in the account AND has issued the document(s) needed to authorize payment of the bill.
It is with the bank refusing to honor the payment directions.
Jerry,
The US treasury is not a bank. In a deeper reality the US treasury owns our currency. Sovereign power of the government owns all whether a monarch or a republic. The sharing of wealth has many benefits including the country’s stability. In this case Russia will lose all stability.
True. But the bank refuses to pay when the funds are there to do so. Thus, the payer has not refused or chosen to not pay. There is a third party interfering the transaction–beyond the control of the payer.
If the bank refuses to honor the check issued to the mortgage company (or other payment authorized) AND there is enough money in your account to pay the bill, then the problem is NOT with the payer. It is with the bank refusing to honor the payment directions.
That could be true, but your mortgage company doesn’t care. They want their money and they don’t care that you have a problem with your bank.
You have an obligation to pay the mortgage, and the fact you are cross-threaded with your bank doesn’t let you off the hook. You can show the bank statements to mortgage company proving you have the money and the mortgage company will still happily foreclose if you don’t put those monies in their account.
Russia will simply tell bond holders they ordered the payment to be made from money held by US banks and the US govt prevented it. Therefore, their problem is with the US govt and the banks, not Russia. Russia does not control what the US govt or US banks do.
Would you accept an excuse like that from someone who owed you money*?*