Economics
Bond Backlash Shows Time Is Running Out for Lebanon
This article is for subscribers only.
The market’s memory is so short when it comes to Lebanon that a few weeks of government inaction all but wiped out a bond rally fueled by Gulf aid pledges and the end of a nine-month political stalemate.
The brief morale boost is giving way to frustration among investors and creditors as a new cabinet formed in January fails to discuss, let alone act on, promised measures meant to shrink a yawning budget gap and jumpstart growth. The economy is creaking under the strain of public debt, which the World Bank has warned is on “an unsustainable path.”