Hefaistos

Russia About to Default on Sovereign Debt (Again)

1. The Russian state has very little debt, after repaying most everything that was borrowed
2. A rescheduling is not a default. It is just a way to survive your debt load until cash flows turn positive again. Russian companies are basically ok, they suffer from depressed raw materials prices. But anytime, all the stimulance packages and bailouts will be enough to get growth going again, and oil prices etc will rise, saving those companies. Thus, a rescheduling is the right thing to do.