Lebanon Opportunities

Mixed prospects

Will foreign bondholders be repaid?

Public finance could be made sustainable

Recession has set in since 2018

At a time when negative developments and the general mood exacerbate already tough economic and financial conditions, veteran research houses point to elements of strength and resilience. In a report released in December, global investment bank Goldman Sachs said that the government’s ability to pay its debt is likely higher than perceived by markets. Challenges could, however, escalate if deposit withdrawals continue at the current pace. This is especially true considering that the recession had already started in 2018 with a 1.9 percent contraction in the gross domestic product (GDP).

Debt restructuring is safe

Sovereign debt will be restructured in a way that hurts neither the economy nor depositors, and foreign holders will be repaid, according to Chairman of the Association of Banks, . Total Eurobond payments of $3.4 billion will be due between March and June this year. These will consist of principal payments of $2.5 billion and coupon payments of $875 million. Lebanese investors hold the bulk of the debt. Total public debt escalated to $89.5 billion at the end of November. Foreigners

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