Russia, which took over the former Soviet Union's debt, said last week it would fully repay a 500-million Deutsch mark ($327 million), 8.875-percent five-year Eurobond issued by Vneshekonombank in 1990, which matured on Feb. 8.
"There was never really any doubt they wouldn't pay up," said one London-based trader who specializes in Russian debt. "These [Vneshekonombank] Eurobonds are seen as a good risk."
Russia's foreign trade bank is also called Vneshekonombank.
The Soviet Union issued a total of eight Eurobonds, of which two have already matured. The rest mature in 1995, 1996 and 1998.
Vneshekonombank made its Eurobond debut in January 1988 with a 100-million Swiss franc ($77 million), 5-percent 10-year bond.Its last Eurobond was issued in 1990.
The only problem would be if the International Monetary Fund doesn't approve a $6.25 billion standby loan being negotiated with Russia.
Deputy Prime Minister Oleg Davydov said this week Russia will fulfill its debt obligations despite continuing uncertainty over whether the IMF will grant the loan.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.