According to reports, Lebanon’s top leadership has raised issues about repaying the country’s sovereign debt. The following rumors come from the President’s office, on Saturday. The following remarks indicate that Lebanese looks to drive itself into the grounds further as it looks to head towards a major financial crisis in the future.
Lebanon’s economy took a turn for the worse starting from October as its local currency was slashed in value by 40% as leading banks in the country denied complete access to their accounts further tightening the situation. Lebanon has garnered a $1.2 billion Eurobond in debt which is due on 9th March which is just a subset of the entire $31 billion in dollar bonds in its entirety.
Prime Minister Hassan Diab is expected to address the Eurobond issue as well as Lebanon’s rising financial crisis in a speech addressed to the nation at 6:30 p.m. (1630 GMT). The announcement comes from the presidency after its meet with the president, prime minister, parliament speaker, central bank governor, and the country’s lead banking association.
“The attendees decided unanimously to stand by the government in any choice it makes in terms of managing the debt, except paying the debt maturities,” the presidency said in a statement after the meeting.
Further sources quote that Lebanon was set to announce on Saturday that they cannot make the upcoming payment regarding their debt before it can restructure their last-minute deal with their creditors so that they could avoid a disorderly default. Lebanon seems to be making good on its restructuring situation as they have hired U.S investment bank Lazard (LAZ.N) and law firms Cleary Gottlieb Steen & Hamilton LLP last week as a huge number of advisors are expected to give their opinions to help with the transition.
As a result of the external and internal backlash, the import-dependent country has shed several jobs scattered throughout the sectors which further gave rise to grievances that led to fear and protests among its citizens.