Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Region to Be Sued for Debt Default

As more Russian regions default on millions of dollars in agrobond loans taken out last year, investment bank MFK Renaissance said Wednesday it would begin legal action against one such creditor.

The Chita region owes creditors 3.5 million rubles ($560,000) in principal, as well as penalties and compounded interest, the bank said in a statement. The case is likely to go to court next month.

"To date, Tomsk and Orenburg are the only regions to have made their payments in full," the group said in the statement, noting that "agrobond buyers and other domestic and international investors in Russian securities are watching the management of the agrobond crisis closely as a bellwether for the financial system as a whole."

Agrobonds represent securitized debt originally owed to the federal government for agricultural loans.