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Russia ‘Potential Failure to Pay’ Event Occurred, CDS Panel Says

RUSSIA
  • The Credit Derivatives Determinations Committee said Wednesday that a “Potential Failure to Pay” event occurred with respect to credit-default swaps on Russia’s sovereign debt (BBG article).
    • The panel was asked to conduct a review after Russia made two dollar-bond payments in rubles, breaching the terms on that debt.
    • The clock is ticking on the grace period, which runs to May 4, before the sovereign is likely to be officially declared in default.

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