Russia averts default, but more deadlines loom

STORY: Russia has dodged a debt default that could have rattled global markets.

The country’s finance ministry said Friday (March 18) that it had made an expected $117 million payment in full.

Some bondholders told Reuters they had received funds due, while others said remittances were in progress.

Markets had been skeptical that payment would happen, with Moscow mired in financial sanctions that complicate the movement of money.

Now any relief could be short-lived, with many more deadlines looming.

Russia’s next international bond payment is a $66 million coupon due on March 21.

In all, the country has about $40 billion in external bonds outstanding.

Russia has threatened to make payments on them in roubles if it can’t access dollars.

But ratings agency Fitch says that would still amount to default for most dollar-denominated debt.

With over $600 million in payments due just by the end of March, markets may have some nail-biting moments ahead.