A second source said the funding was in the form of a bridge loan to help pay local banks, the main holders of the debt. The Association of Banks of Lebanon has urged the government to honour its commitments and settle its upcoming debt obligations, as not doing so risks further eroding investor confidence and affects the relationship Lebanese lenders have with correspondent banks, who will take stricter measures with them. The proposal is the latest effort by one of the world’s most indebted nations to buy more time in the face of looming repayments and dollar shortages. Owned mostly by the central bank, those securities have coupons of 11.5% and 12%, respectively. Our Standards: The Thomson Reuters Trust Principles. Reuters cited Sfeir in a report Jan. 13 as saying he didn’t foresee any problems with the swap proposal and it was “common practice.”, — With assistance by Paul Abelsky, and Dana Khraiche. Goldman Sachs has estimated foreign investors would recover 35 cents on the dollar. For negotiations to be successful, they need to include “a medium [term] plan that has credibility in the eyes of the creditors, [and] the IMF’s involvement brings confidence to these reform plans,” says Mr Kronfol. Rudderless since Prime Minister Saad Hariri resigned in October as moves to raise fees and taxes triggered massive anti-government protests, Lebanon is gradually succumbing to its worst economic malaise in decades. That would push the country further to the cliff edge and it could have dire consequences for Lebanon’s banks, which have traditionally underpinned the economy and allowed the government to finance fiscal and current account deficits. Lebanon already secured pledges for $11bn from international donors at the 2018 Cedre conference in Paris, which hinge on the country pushing through a string of reforms. “We still think the right course of actions is to default, restructure and enter into talks with creditors and bring in the IMF,” he says. Turkey Stuns With Rate Hike to Cap Effort of Stealth Tighten... Futures Fall With European Stocks on Recovery Risk: Markets... China Developer Evergrande Warns of Liquidity Crunch, Spooki... Fed’s Inflation Approach Is Making Waves in Some Corners. Lebanon’s longtime parliamentary Speaker, Nabih Berri, said citizens, who have been protesting since October, would reject an IMF bailout programme that would most likely require the country to float its currency, forcing a major devaluation, in addition to the implementation of higher taxes and austerity measures. The redemption on Monday is important as market concern had been growing about an impasse over Lebanon’s budget acting as an obstacle to the country raising new debt. Goldman Halves U.S. Growth Forecast on Lack of Extra Fiscal... ECB Hands Banks $203 Billion in Cheap Cash to Boost Lending, Gold Slides to Two-Month Low as Dollar Gains Embolden Bears, SNB Reacts to Intervention Criticism, Keeps Pledge on Franc, China’s Beaten-Down Bonds Set to Enter FTSE Russell Index, Sunak Can Flex U.K. “A moratorium, where you tell creditors that you will postpone payment on a maturing debt, it’s too late for that. It has another $700 million due in April and $600m in June. Most of Lebanon's longer bonds trade at less than 50 cents, Note: Shows selected bonds; July 2035, Nov. 2029 bonds are mostly held by the central bank. "This has to be the last time we go through this dilemma and immediately produce a rescue plan and implement it.”. The country's public debt increased 7.6 per cent to $91.64 billion (Dh336.5bn) year-on-year as of the end of December 2019. Lebanon, 6.65% 26feb2030, USD, еurobond information: issuer, comment, quotes, payment, ratings Some have proposed that Lebanese lenders that hold government bonds swap them for longer-dated ones. The country has $1.2bn of eurobonds that hit maturity on March 9.