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What it means for Russia to default on its debt By Allison Morrow, Business Updated 1451 GMT (2251 HKT) March 17, 2022 Here’s what Europe is doing to wean off reliance on Russian gas ‘Do not believe the Official Russian Warship Go Fuck Yourself Shirt Besides,I will do this propaganda’: Russian TV protester is released from questioning Tributes honor ‘selfless’ and ‘vibrant’ journalists killed in Ukraine Vodka company rebrands itself over Russia-Ukraine war Ukraine steel plant at risk of emitting hazardous material if hit by bombs New York ( Business)Russia is barreling toward a default on its foreign debt payments, threatening to plunge its economy deeper into crisis. Defaults are murky territory in global economics, and Russia’s situation is complicated by its growing isolation under the unprecedented sanctions imposed on it by Western powers. For those of us who slept through their Intro to Macroeconomics class in college, let’s unpack just what we mean when talk about this historic (and still potential) Russian default. First thing’s first: What is ‘default’? Put simply: Governments, just like regular people, take out loans to finance big projects, and those loans must be repaid on a schedule. A default happens when a borrower cannot pay the interest or principal on its debt when it comes due. Governments borrow money by issuing bonds. Investors, both at home and abroad, buy those bonds, effectively lending the government money with the promise of being paid back with interest. Failure to pay results in a default, and that can have dire consequences, which is why governments typically do everything they can to avoid them. Russia hasn’t defaulted on foreign debt obligations since its 1917 Bolshevik revolution. Why can’t Russia
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