Lebanon: PM Diab says that country will default on Eurobond debt

Lebanese Prime Minister Hassan Diab announced on Saturday in Beirut that Lebanon will be defaulting on their Eurobond debt amid a financial crisis that is affecting foreign currency reserves. The country is due to repay a €1.06 billion ($1.2 billion) Eurobond on 9 March, but «hard currency reserves have reached a critical and dangerous level, prompting the Lebanese Republic to suspend the payment... Еще,» admitted Diab. «Lebanon is a country that respects its obligations. But in light of the current situation, the state is unable to pay the coming maturities,» he added. Lebanon's debt is currently at nearly 170 percent of its gross domestic product. It is believed that debt default will result in an around 40 percent decrease in the value of the local currency and lead to banks blocking access to customer's savings. Protests over economic stagnation and corruption have been taking place in Lebanon since October 2019, and ways of improving the financial situation of the much-indebted country are being sought by the government.

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