Morgan Stanley names date of Russia’s probable default

The American financial corporation Morgan Stanley believes that Russia risks losing its solvency in the coming months. According to analysts, the default may occur on April 15.

Bloomberg reported this.

Morgan Stanley's report says Russia's chances of paying off its foreign debt are declining because of falling bond prices, a recession in the country, and the accumulation of many payment restrictions after the invasion of Ukraine.

"We see default as the most likely scenario," wrote Simon Weaver, the company's global head of sovereign lending strategy for emerging markets.

Morgan Stanley believes that Russia is facing a default similar to the default in Venezuela.

"In the event of default, the scenario is unlikely to be the same as usual. Instead, Venezuela is perhaps the best comparison," a statement said.

The agency notes that the default may occur on April 15, after the end of the 30-day grace period on coupon payments to be paid by the Russian government on dollar bonds maturing in 2023 and 2043.

The non-payment may be due to Russia's unwillingness to pay foreign creditors due to sanctions imposed by the United States and its allies.