Eurobond market: why OFAC's license non-renewal after May 25 is not a big deal?
smartmoney.onelapse once it expires on May 25, people familiar with the matter told Bloomberg. The waiver allows US investors to receive payments from designated entities (including the Bank of Russia, the Russian Ministry of Finance and the NWF). After May 25, U.S.banks will not be allowed to process payments to U.S.
residents.They will have to apply for individual licences to receive payments from designated Russian entities.The news triggered a new wave of fears of an imminent technical and then real default on Russian sovereign bonds.