Lebanon Debt News: Government Has a Plan to Avoid Default - Bloomberg:
Lebanon’s government is lurching from one extreme solution to another as it wrangles over whether to repay $1.2 billion of notes maturing in five days.
In the latest twist of its effort to avoid a default, it may revive an offer for a debt swap with local holders of its Eurobonds. At a meeting with bankers Tuesday, the finance minister suggested that Lebanese banks swap their entire Eurobond holdings for new debt with lower coupons, a person familiar with the talks said.
The government would, under this scenario, pay around $3.5 billion in principal and interest this year to foreign bondholders, said the person, who asked to remain anonymous because the information isn’t public.
Lebanon has not submitted a proposal to bondholders to move into new longer-dated notes with lower coupons, Finance Minister Ghazi Wazni said in a statement Wednesday.
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