Congo default likely to drag on putting bond plans in jeopardy
Republic of Congo is in technical default after a $21m interest and principal payment on its Eurobond maturing 2029 did not reach investors during the 30 day grace period. The government announced plans to issue a Eurobond in its budget for the second year running, but international market access is likely to be closed until the problem is resolved, according to analysts.
The funds to pay for a coupon and principal payment on Congo’s $478m notes, due June 30, were sent from the country to the bond trustee on June 26, but thereafter were frozen after restraining notices from US courts, according to S&P.
The restraining notices, obtained by
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