MOODY'S RECOGNIZES BELARUS' DEFAULT ON FOREIGN DEBT

The international rating agency Moody's has recognized the technical default of Belarus. This is stated in the message dated July 14, as the deadline for the payment of $22.9 million on Belarus-27 Eurobonds expired a day earlier (July 13).

The Ministry of Finance of Belarus made this payment in the national currency due to the refusal of payment agents to cooperate and the inability to make a transaction in the currency. Therefore, the bondholders were unable to receive the payments due to them.

The rating company announced a negative outlook for the country and stated that it was unlikely that any financial support from Russia would be used to fulfill debt obligations.

The Government stated that this decision is a forced measure. It is similar to the inability of the payment agent and other participants in a foreign agreement to complete budget transfers to all holders of Eurobonds in a timely manner.

At the moment, the credit rating of Belarus from Standard & Poor's is at the CC level with a negative outlook.

Moody's credit rating for Belarus was last set at Ca with a negative outlook. The credit rating of Belarus from Fitch was last fixed at C with a forecast of n/a.

In general, the credit rating is used by sovereign funds, pension funds and other investors to assess the creditworthiness of Belarus, which has a great impact on the country's borrowing costs.

 

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