Lebanon Lines Up Eurobond Buyers of Last Resort to Win More Time - Bloomberg

Lebanon Lines Up Eurobond Buyers of Last Resort to Win More Time - Bloomberg:

All but cut off from international credit markets and facing dollar shortages at home, Lebanon has come up with another workaround to allow the government to borrow money without raiding the central bank’s reserves.

Local lenders, already the biggest holders of Lebanon’s sovereign debt, will cash out certificates of deposit, or CDs, at the central bank to buy some of Lebanon’s planned Eurobond issue of up to $3 billion, a person familiar with the matter said. 





The central bank, known as the Banque du Liban, will subscribe to part of the bond sale, but without directly putting up money, the person said. The funds from local banks will then go toward repaying some of a $1.5 billion bond that matures in November.