Economics
Goldman Asks What If Lebanon Is Forced to Restructure Debt
- Bank sees the imminent debt restructuring of Lebanon unlikely
- Any debt overhaul will likely favor local banks, report says
Photographer: Joseph Eid/AFP via Getty Images
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Goldman Sachs Group Inc. still sees an imminent debt restructuring in Lebanon as unlikely but is already turning its attention to how much investors could recover as one of the world’s most indebted countries teeters on the brink of financial crisis.
Under the U.S. bank’s base scenario, foreign investors would recover 35 cents on the dollar, Farouk Soussa, an economist at Goldman Sachs, said in a report. He added, however, that any debt overhaul would put the country’s banks first, meaning “the actual recovery value” would be significantly different to contain damage. Local lenders are among the biggest holders of Lebanon’s sovereign debt.