#Lebanon urged to restructure debt as crisis deepens | Financial Times

Lebanon urged to restructure debt as crisis deepens | Financial Times:

Protest-stricken Lebanon has vowed to repay $1.5bn to holders of its government debt as planned this week despite a stalled economy and drained dollar reserves, but economists say the time has come to consider letting investors down.

With total borrowing of $88.4bn, Lebanon has one of the world’s biggest debt burdens, projected to be 155 per cent of gross domestic product by the end of 2019. But it has always met payments to creditors — a crucial step in maintaining investors’ trust and ensuring long-term access to international markets.

Now, as the protests over corruption and joblessness enter their second month, some analysts and economists are warning that imports should take precedence over bond obligations, urging the government to delay repayments or devise another way to spread the pain.