Live: auction to endorse Russia’s default

Published on: 09/12/2022 – 07:52 This is a symbolic event but which reflects the effect of the sanctions against Moscow after six months of war: a council of creditors is organizing an auction on Russia’s debt on Monday which will ratify a default, the first on Russia’s foreign debt since 1917. Follow the latest developments in the war in Ukraine hour by hour. 7:26 a.m .: IMF plans to expand access to emergency aid in the face of food shocks The International Monetary Fund (IMF) is considering ways to provide emergency assistance to countries facing shocks caused by the rise in food prices due to conflict, and will discuss measures to be put in place at a meeting of its board of directors on Monday, September 12. The plan will be presented at an informal meeting from the administration board. The IMF could, if the plan is adopted, help Ukraine and countries affected by the fallout from the conflict between Moscow and Kyiv without them having to meet the conditions required to access its other financing programs. . 6:40 a.m .: auction to ratify Russia’s default on payment A council of creditors is organizing an auction on Russia’s debt on Monday which will ratify a default on payment, the first on Russian external debt since 1917. Unknown to the general public , even a little secret, this council, called the CDDC (Credit Derivatives Determinations Committee), organizes these auctions whose objective is to compensate investors who have taken out insurance against Russia’s payment default, “Credit Default Swaps “ or CDS. prohibited by Western sanctions. This is Moscow’s first default on its foreign debt since the episode of Russian loans launched by Tsarist Russia on Western markets, particularly in France, and which the Bolshevik leader Lenin refused to recognize after the 1917 revolution. In fact, not much has changed: Russia has been cut off from international capital markets anyway since its invasion of Ukraine at the end of February. Moreover, Moscow has little foreign currency debt, its foreign debt weighing around $40 billion. Its public debt is also close to only 20% of its GDP. At the same time, its cash inflows from hydrocarbon sales have been massive since the start of the year under the effect of soaring prices.>> To see – Laurence Boone: “Russia is attacking our democratic systems by playing with gas prices 4:07 a.m.: Xi to meet Putin on his first trip outside China since the start of the pandemic Chinese President Xi Jinping will travel to Central Asia this week where he will meet his Russian counterpart Vladimir Putin on his first trip abroad in more than two years. With AFP and Reuters