Economics
How Lebanese Default Would Play Out
- ‘Market is running out of patience,’ says investor Pinebridge
- Caretaker minister says Lebanon should not repay next Eurobond
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For many bond investors, it’s a matter of when, not if, Lebanon restructures its $87 billion of debt as it reels under a deepening financial crisis. Working out what the trigger would be or the extent of the fallout is another matter entirely.
After repaying $1.5 billion of Eurobonds that matured last month, the focus is turning to whether authorities will honor a $1.2 billion commitment on March 9. Several influential local economists and even some officials say the country should use its dwindling reserves to pay for imports instead of creditors.