Regime's Getting One Step Closer To Full-Scale Default

The S&P Agency confirmed the rating of Belarus on foreign currency loans at the level of selective default.

The S&P Global Ratings international rating agency confirmed the rating of Belarus in foreign currency at the SD level (selective default). The agency announced it in its official message.

The forecast for the long-term local currency rating was assigned by S&P experts as negative, along with the affirmation of the foreign currency rating at the selective default level, the long-term credit rating in the national currency was at CCC with a negative outlook, and the short-term credit rating was C.

The rating on four issues of Eurobonds with interest payments scheduled for August was downgraded from СС to D (default). This is caused by the decision of the Ministry of Finance to fulfil obligations in Belarusian rubles instead of dollars prescribed in the contract.

"Macroeconomic and fiscal pressures could weaken the government's ability to avoid delays in fulfilling national currency obligations", primepress.by quoted the agency.

Recall that at the end of June, Belarus transferred the next interest to holders of Eurobonds, but it was Belarusian rubles. The Ministry of Finance explained that due to technical difficulties, foreign banks refuse to transfer funds to investors.

International rating agencies reacted as follows: Moody’s announced the default of Belarus, Fitch warned of the possibility of default, and later lowered the long-term rating of our country in foreign currency. S&P also downgraded the credit ratings of Belarus and announced a default on Eurobonds.

In early July, it became known that the international financial conglomerate Citigroup Global Markets Europe AG and Citibank refused to work with Belarusian Eurobonds. Then the Ministry of Finance announced that it would look for alternative payment agents.