ABC News business and economics correspondent Deirdre Bolton explains the global impact of Russia defaulting on its debt.While Russia’s attack on Ukraine has many serious humanitarian consequences, there are also financial ones.
Distressed debt investors such as Hans Humes, CEO of Greylock Capital, emphasize that the amount is small and that an initial default is already widely expected. If Russia were to default on some or all of its debt, there would probably be greater global market volatility on the news, but longer term, the greatest risks to the global economy and the U.S. economy are"the unintended consequences of sanctions placed against Russia and the resulting supply chain issues," he said.
In war times, there are myriad extra wrinkles. Due to the sanctions the West has placed against Russia, the country is isolated from most of the global banking system. The U.S. Treasury has offered Russia a loophole to pay its dollar-denominated debt until the end of May; it is unclear what happens after that.
The American banks that have Russian debt in their portfolios have very small amounts. The bonds are in specialty emerging markets funds and they are a small part of those funds. Additionally, American banks are reducing even these small amounts of exposure to comply with sanctions and avoid unnecessary risk.
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Have you ever wondered why there's war somewhere in the world when Democrats rule America?
Inflation is Joe Biden and the Democrats fault. Stop lying to people.
Well, at least it's a moral victory against Russia.. I mean what's a little something like people going broke and starving when winning Russia in a proxy war is more important?
Understand inflation easily.. 5 reasons why Prices are going up and 10 things will be more expensive till the end of 2022
As long as Russia has internal RAW materials,its debt to the world doesn't matter,the truth is:debt money has and is a form of indentured servitude, millennium of blood money has been used to keep a vast portion of humanity in a state of constant war ,it's over X_19_Force
Good murdered go down is worth it
Hey, that's Bidens favorite word
Yes there will be...StayStrong Ukraine