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. Last Updated: 07/27/2016

Prices May Fall With Debt Terms' Delay

LONDON -- Delay in the final terms for Russia's debt accord with its commercial creditors is making investors edgy and prices are likely to drop further if it goes on much longer, traders said Thursday.


But some analysts and traders expect the term sheet within a matter of days and were confident the deal would eventually go through even if a Communist candidate wins June's presidential poll.


The price of Vneshekonombank debt -- which represents the defaulted Soviet debt taken on by Russia in 1991 -- was already softer Thursday.


The term sheet, largely settled last month, will clarify a number of details, including how to determine past-due interest and the dates the deal will be settled.


"I was hopeful it would happen by the end of this month and I hope it is still on target," said one banker, who participated in the negotiations.


"If the terms don't come out there will be disappointment and prices will probably come off," a debt trader said.