(Moscow) Belarus, targeted by international sanctions as an ally of Russia, sharply criticized on Friday the fact that the rating agency Moody’s declared the country in default for having failed to make a bond repayment in dollars on time.
Posted at 12:23 p.m.
“Moody’s actions are provocative and aim to artificially create shocks and turmoil around Eurobonds of the Republic of Belarus,” the Belarusian finance ministry said in a statement.
Moody’s said Thursday that Belarus failed to repay a $22.9 million tranche of a $600 million bond maturing in 2027 before the end of a grace period that was running. until July 13.
Belarus had assured that it would repay in its national currency, the Belarusian ruble, which Moody’s considers a default.
“The agency’s decision [Moody’s] was taken without a single question of clarification being addressed to the Ministry of Finance. In our view, there is a bias in the assessments,” the department added.
Belarus claims to have transferred the amount in Belarusian rubles to a special account and accused Citigroup and Citibank of refusing to transfer this money to creditors.
“The Belarusian side is and will make every effort and take all measures” to repay its creditors “via an alternative means,” the Belarusian ministry added.
Russia launched a military offensive in Ukraine on February 24 with political and logistical support from Belarus. As such, the two countries have been targeted by a shower of Western sanctions, de facto cutting them off from international financial markets.
Consequently, these two countries were declared in default for having missed repayment deadlines in dollars. Russia has also defended the repayment of its debts in rubles, accusing the West of wanting to orchestrate an artificial default.