Credit Rating Agency “Fitch” revealed that Lebanon's financial position is heading towards debt restructuring, indicating that the restructuring of the government of Lebanon's debt may take various forms, expecting negotiations with bondholders to be complex.
According to the agency, the sustainability of the ability to meet the debt is conditional on a serious financial and structural reform process for Lebanon.
Lebanon faces serious economic difficulties, which were exacerbated after the start of the unprecedented protests in October, against the entire political class accused of corruption and incompetence.
In 2018, Lebanon pledged to reduce its public deficit and undertake structural reforms in return for promises of aid and grants from the international community of 11.6 billion dollars (10.6 billion euros). Lebanon suffers from nearly $ 92 billion in debt, which is 150 percent larger than the gross domestic product.
The Lebanese state should repay the next March of $ 1.2 billion of Eurobond bonds, according to press reports, and data in this context indicate that the Lebanese government wants to postpone the payment of financial dues, as part of a plan to reschedule initially, not restructuring, which is going in a different system under the most difficult conditions.
Source (Al-Arabiya.net website, Edited)
