Friday 17 May 2019

Indebted #Lebanon may struggle to refinance as austerity budget stalls - Reuters

Indebted Lebanon may struggle to refinance as austerity budget stalls - Reuters:

Lebanon’s impasse in agreeing a credible fiscal reform plan and deteriorating global market conditions means it may struggle to refinance key foreign currency debts coming due this year, unnerving overseas investors.

Outright default can likely be averted in the short-term by a government financing manoeuvre involving the central bank and local banks, the main holders of its debt.  But this is only likely to be a stopgap and many foreign funds contacted said they would be reluctant to delve into new Lebanese Eurobonds until they assess reforms.

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