Economics
Lebanon Lines Up Eurobond Buyers of Last Resort to Win More Time
- Central bank is set to step in since market access is limited
- Lebanon to use funds to pay back maturing debt, person says
The Banque du Liban in Beirut.
Photographer: Amer Ghazzal/SOPA Images/LightRocket via Getty Images
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All but cut off from international credit markets and facing dollar shortages at home, Lebanon has come up with another workaround to allow the government to borrow money without raiding the central bank’s reserves.
Local lenders, already the biggest holders of Lebanon’s sovereign debt, will cash out certificates of deposit, or CDs, at the central bank to buy some of Lebanon’s planned Eurobond issue of up to $3 billion, a person familiar with the matter said.