“We stand ready to assist the authorities … Any decisions on debt are the authorities’ to be made in consultation with their own legal and financial advisers,” Gerry Rice, the IMF’s director of communications and spokesman said. The state is riddled with corruption and waste. The country's public debt increased 7.6 per cent to $91.64 billion (Dh336.5bn) year-on-year as of the end of December 2019. A default would also provide legal recourse for holders of other eurobonds to request Lebanon to pay them in advance of their respective maturity dates. Even though the country has never defaulted on servicing its debt, the bulk of which is held by Lebanese financial institutions (banks 33.4 per cent and the central bank 43 per cent), the country has important fiscal decisions to make with eurobonds maturing this year and next. For the government’s credibility and to address valid concerns of protestors, it “must try and claw back some of the money that has been paid over the years, that will send an important signal that they are serious about reforms and addressing corruption”, he adds. The cabinet says the budget will reduce the deficit to 7.6% of GDP from last year’s 11.2%. LONDON, May 21 (Reuters) - A $650 million Lebanese eurobond was repaid successfully with sources familiar with the matter saying the central bank provided funding to the finance ministry to meet the payment. See here for a complete list of exchanges and delays.
Mr Ghobril proposes the government pay the eurobond and as part of a wider framework, lenders agree to a proposal put forward by the central bank where holders of eurobonds swap them for bonds with 15-year maturities. On February 12, Lebanon formally asked the IMF for help to overcome its worst economic crisis since the end of a 15-year civil war, but stopped short of requesting a bailout package. Bank Audi said Wednesday it’s trying to sell its Egyptian unit to raise capital. If Lebanon repays the full principal to bondholders which include the Fidelitys and Ashmores of this world, buying this debt issue would be … Rudderless since Prime Minister Saad Hariri resigned in October as moves to raise fees and taxes triggered massive anti-government protests, Lebanon is gradually succumbing to its worst economic malaise in decades. “The latest measure is signaling rising near-term liquidity stress, casting doubt on the ability to service debt near-term.”. A second source said the funding was in the form of a bridge loan to help pay local banks, the main holders of the debt.
All quotes delayed a minimum of 15 minutes. Lebanon needs to restructure its debt, says Dino Kronfol, chief investment officer, global sukuk and MENA fixed income, at Franklin Templeton. The Association of Banks of Lebanon has urged the government to honour its commitments and settle its upcoming debt obligations, as not doing so risks further eroding investor confidence and affects the relationship Lebanese lenders have with correspondent banks, who will take stricter measures with them. Stimulus Credit Card in Unfazed Markets, Swap plan signals growing financial stress, JPMorgan says, Lebanon’s central bank wants to offer exchange into new notes. The $1.2 billion 10-year sovereign Eurobond maturing in March 2020 trades at 82 to the US dollar for an implied yield to maturity of 175%.