Transcripts for CNN Early Start With Christine Romans and La

CNN Early Start With Christine Romans and Laura Jarrett March 16, 2022 09:23:00

20 billion of that is held by foreign investors who could be impacted by this. what you can expect in the short term is if russia decides to pay that debt back in rubles while their interest payments on other types of debt will skyrocket, it will have a massive ribl effect in the short term. i should caution russia did default on the domestic debt back in 1998. you may remember the long-term capital management saga. this is the first time since lenin came to power. >> putin is putting his economy and people backward here. in the simplest terms, for investors holding this debt, it means losses for them essentially. the entire interest rate cross the board. if russia wants to borrow money, it's not paying back its creditors, it shows that it's not a fair partner, that means interest rates go up. >> reporter: yeah, absolutely.

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