Finance ministry makes another Eurobond interest payment in rubels

June 30, BPN. On June 28, the Belarusian Ministry of Finance said it paid a rubel equivalent of $22.9 million in interest on the US-dollar-denominated Eurobonds maturing in 2027.

It transferred the funds to a separate account at Belarusbank, its press office reported.

On June 2, the international rating agency Moody’s downgraded Belarus’ debt rating to C, its lowest rating for debt obligations that are typically in default, with little prospect for recovery of principal or interest.

Moody’s analysts expect that sanctions will continue to affect Belarus’ ability to service its Eurobond obligations over the medium term.

In late June 2022, the Council of Ministers and the National Bank declared their intention to service Belarus’ foreign debt in Belarusian rubels. Belarus has been depositing rubel interest payments at Belarusbank for a year after Citigroup and Citibank stopped servicing payments on its Eurobonds amid Western sanctions.

Rating agencies Fitch and Moody’s downgraded Belarus’ credit rating: the former said its default was inevitable, and the latter described the rubel payment as a default.

The Belarusian Ministry of Finance criticized those decisions and keeps paying Eurobond interest in rubels.