Ruling on Lebanon Debt Insurance Paves Way for $400m Payout - Bloomberg:
Investors in credit insurance on Lebanon are set to receive a payout after a binding ruling from a CDS committee.
Up to roughly $400 million of contracts could pay after the heavily-indebted nation failed to honor a $1.2 billion Eurobond due earlier this month. The exact value will be decided at an auction to settle the credit swaps, which will take place at a later date.
The Middle Eastern country is struggling to cope with dwindling foreign-currency reserves and double-digit inflation amid its worst financial crisis in decades. A new government backed by Hezbollah, the Iranian-linked group, is seeking to draw up an economic program that cuts debt and overhauls the country’s banking industry.
Lebanon wants to reduce its debt to between 60% and 80% of gross domestic product from 170% as part of the restructuring efforts, Economy Minister Raoul Nehme told Bloomberg earlier this month. The nation has $30 billion of international bonds.
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