This post was originally published on this site
NEW YORK (Reuters) – Russia’s coupon payment on its sovereign bond maturing in 2029 was processed by correspondent bank JPMorgan Chase & Co. (NYSE:JPM), a source said on Monday, the second time in recent days the country appears to have averted default.
Russia had been due to make a $66 million payment to bondholders on Monday on the bond.
Last week, it paid interest due on two sovereign bonds, easing doubts about its willingness and ability to honor external debt after harsh sanctions were imposed by Western nations.
JPMorgan worked with the U.S. Treasury Department on necessary approvals, the source familiar with the situation said.
The source said the payment had moved on to the next step before the money is handed over to bondholders. Reuters could not learn which bank was acting as the payment agent on the bond.
Last week, JPMorgan processed the payment as correspondent bank and handed it to Citigroup Inc (NYSE:C), which as payment agent distributed the funds on to bondholders.
