Lebanon Faces a $50 Billion Hole Even Beyond Its Eurobonds - Bloomberg: Lebanon has a lot more than just maturing Eurobonds to worry about.
In addition to $31 billion of those, the Middle Eastern nation’s central bank has $52.5 billion of obligations in the form of foreign-currency deposits and certificates of deposit, according to calculations by Toby Iles and Jan Friederich, Hong Kong-based analysts at Fitch Ratings Ltd.
Mostly owed to Lebanese banks, these additional debts compound the country’s woes as it grapples with its deepest economic crisis in decades. They also complicate a potential debt restructuring by the government, which on Tuesday confirmed it had hired Lazard Ltd. and Cleary Gottlieb Steen & Hamilton as financial advisers.
Falling reserves and inflows have led to a shortage of foreign exchange in Lebanon, causing havoc with the financial system. Moody’s Investors Service, which downgraded the government’s debt to 10 steps below investment grade last week, said a default is “all but inevitable” in the near term.
In addition to $31 billion of those, the Middle Eastern nation’s central bank has $52.5 billion of obligations in the form of foreign-currency deposits and certificates of deposit, according to calculations by Toby Iles and Jan Friederich, Hong Kong-based analysts at Fitch Ratings Ltd.
Mostly owed to Lebanese banks, these additional debts compound the country’s woes as it grapples with its deepest economic crisis in decades. They also complicate a potential debt restructuring by the government, which on Tuesday confirmed it had hired Lazard Ltd. and Cleary Gottlieb Steen & Hamilton as financial advisers.
Falling reserves and inflows have led to a shortage of foreign exchange in Lebanon, causing havoc with the financial system. Moody’s Investors Service, which downgraded the government’s debt to 10 steps below investment grade last week, said a default is “all but inevitable” in the near term.
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