Latest Sovereign debt News

EXPLAINER: What's the impact of a Russian debt default?

Jun. 26, 2022 17:18 PM EDT

Russia is poised to default on its foreign debt for the first time since the 1917 Bolshevik Revolution, further alienating the country from the global financial system following sanctions imposed over its war in Ukraine. The country faces a Sunday night deadline to meet a 30-day...

Settlement would forgive $6B for defrauded college students

Jun. 23, 2022 16:37 PM EDT

The Biden administration has agreed to cancel $6 billion in student loans for about 200,000 former students who say they were defrauded by their colleges, according to a proposed settlement in a Trump-era lawsuit. The agreement filed Wednesday in San Francisco federal court would...

EXPLAINER: Why Sri Lanka's economy collapsed and what's next

Jun. 23, 2022 14:01 PM EDT

COLOMBO, Sri Lanka (AP) — Sri Lanka’s prime minister says the island nation’s debt-laden economy has “collapsed” as it runs out of money to pay for food and fuel. Short of cash to pay for imports of such necessities and already defaulting on its debt, it is seeking help from neighboring...

Debt wiped for Corinthian students as bigger decisions loom

Jun. 02, 2022 17:51 PM EDT

WASHINGTON (AP) — As college graduates wait to see whether President Joe Biden will wipe out some of their student loan debt, his administration is taking a more limited step to address a fraud scandal at Corinthian Colleges, a for-profit chain that collapsed nearly a decade ago. ...

Congressional Budget Office says inflation to last into 2023

May. 25, 2022 18:16 PM EDT

WASHINGTON (AP) — The Congressional Budget Office released an economic outlook Wednesday saying high inflation will persist into next year, likely causing the federal government to pay higher interest rates on its debt. The nonpartisan agency expects the consumer price index to...

US to end Russia's ability to pay international investors

May. 25, 2022 02:38 AM EDT

WASHINGTON (AP) — The U.S. will close the last avenue for Russia to pay its billions in debt back to international investors on Wednesday, making a Russian default on its debts for the first time since the Bolshevik Revolution all but inevitable. The Treasury Department said in a...

EU to keep budget rules looser for longer amid war fallout

May. 23, 2022 11:19 AM EDT

BRUSSELS (AP) — The European Union has moved to prolong looser limits on spending by member countries for an extra year in a bid to counter the economic fallout from Russia’s war in Ukraine. The European Commission recommended on Monday suspending the EU’s regular rules on...

Sri Lankan power family falls from grace as economy tanks

May. 13, 2022 05:32 AM EDT

NEW DELHI (AP) — With one brother president, another prime minister and three more family members cabinet ministers, it appeared that the Rajapaksa clan had consolidated its grip on power in Sri Lanka after decades in and out of government. But as a national debt crisis spirals out...

Biden showcases deficit progress in bid to counter critics

May. 04, 2022 14:02 PM EDT

WASHINGTON (AP) — President Joe Biden on Wednesday highlighted new figures showing the government's red ink will grow less than expected this year and the national debt will shrink this quarter as he tried to counter criticism of his economic leadership amid growing dismay over inflation going...

EXPLAINER: What's the latest in Russia's dance with default?

May. 03, 2022 19:49 PM EDT

Russia appeared to dodge default on its foreign debt by dipping into its scarce dollar reserves. But Moscow's debt drama is far from over. Russia's finance ministry abandoned its proposal to use rubles instead of dollars to make overdue payments on two government bonds, saying...