Wednesday 22 January 2020

Explainer: Can #Lebanon's new government revive the economy? - Reuters

Explainer: Can Lebanon's new government revive the economy? - Reuters:

After three months of political paralysis, Lebanon has finally formed a government under Prime Minister Hassan Diab. Now comes the task of saving the country from a biting financial crisis and winning over investors and foreign donors.

HOW LIKELY IS A DEBT DEFAULT OR RESTRUCTURING?

Lebanon’s public debt burden, equivalent to around 150% of GDP, and its twin current account and fiscal deficits looked unsustainable even before anti-government protesters took to the streets three months ago.

With many of the international sovereign bonds trading at less than half their face value, market observers see an increasing likelihood of Lebanon struggling to repay some of its obligations and seek a restructuring with creditors at some point.

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