Skip to content
Subscriber Only

How Lebanese Default Would Play Out

  • ‘Market is running out of patience,’ says investor Pinebridge
  • Caretaker minister says Lebanon should not repay next Eurobond
Video player cover image
How Would Lebanese Default Play Out?
Updated on

For many bond investors, it’s a matter of when, not if, Lebanon restructures its $87 billion of debt as it reels under a deepening financial crisis. Working out what the trigger would be or the extent of the fallout is another matter entirely.

After repaying $1.5 billion of Eurobonds that matured last month, the focus is turning to whether authorities will honor a $1.2 billion commitment on March 9. Several influential local economists and even some officials say the country should use its dwindling reserves to pay for imports instead of creditors.