Finance ministry pays Eurobond interest in Belarusian currency again

August 30, BPN. On August 29, Belarusian finance ministry reported a payment of a rubel equivalent of $46.1 million on the U.S.-dollar denominated Eurobonds maturing in 2023 and 2030.

The funds were transferred to a separate account at Belarusbank, while Citibank N.A. London Branch, a designated Belarus’ Eurobond paying agent, was granted access rights.

On June 28, the Council of Ministers and the National Bank in a joint resolution declared their intention to service Belarus’ foreign debt in Belarusian rubels. On the next day, the Belarusian finance ministry reported the first rubel payment of interest on the 2027 Eurobond denominated in US dollars.

On July 7, Citibank, N.A. of London announced that it will stop servicing payments on Belarus’ Eurobonds amid Western sanctions.

Shortly after, rating agencies Fitch and Moody’s downgraded Belarus’ credit rating: the former said its default was inevitable, and the latter described the existing situation as a default.

The Belarusian Ministry of Finance criticized those decisions.

On August 4, S&P Global Ratings cut Belarus’ long-term foreign currency rating to SD (selective default) and said it has defaulted on Eurobonds (D).