08/26/1998 20:13:34 Moody's says Russia in default on rouble debt
NEW YORK, Aug 26 (Reuters) - Moody's Investors Service
considers Russia's recent failure to make payments on certain
rouble-denominated debt a default that could force the nation
to accelerate payments in $10.6 billion in government bonds, a
Moody's analyst said on Wednesday.
"Russia defaulted before any restructuring details came out
because some of the GKOs were due in the interim and they
didn't meet those payments," said Jonathan Schiffer, a Moody's
Russia's $10.6 billion in dollar-denominated MinFin bonds
contain cross-default provisions that could compel Moscow to
accelerate payment on some or all of the securities in the
event of a default, Schiffer said.
Schiffer said that while Russia's actions might trigger
cross-default provisions in the MinFin bonds, Russia might
succeed in finding a legal loophole which would exempt it from
having to meet an accelerated repayment schedule.
MinFin bonds were created from Russian bank commercial
((Douglas Brown, U.S. Corporate Bond unit, 212-859-1662))