The Prime Minister of Lebanon Hassan Diab announced that the country will not be able to repay Eurobonds for $ 1.2 billion.
Reportedly, the money needed to pay for March 9, but according to Diab, the country’s foreign reserves fell to dangerously low levels and needed to ensure basic needs, reports LB.
The Prime Minister stressed that public debt in Lebanon reached almost 170% of GDP. “This is more than Lebanon can bear, and more than capable of Lebanese to pay the interest,” said Diab.
He added that the Lebanese government will try to restructure its debt, “by means of honest, well-meaning negotiations with all creditors”.
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The total debt of Lebanon Eurobonds is about 31 billion dollars.
Default on the bonds will mark a new stage of economic crisis that Lebanon is in the autumn of 2019. The exchange rate of the Lebanese pound, who for two decades was tied to the dollar, collapsed by 40%. Commercial banks have imposed restrictions on the withdrawal of dollars and foreign transfers.