Foreign Investors In Row Over Lebanese Debt

A row has broken out between some of Lebanon’s biggest foreign creditors as the country slides towards a restructuring of its enormous debt burden. Ashmore, which has amassed a more than $1bn position in Lebanon’s short-dated bonds, is pushing for Beirut to repay a dollar bond that matures next month, despite the parlous state of the country’s finances, the Financial Times reported. The fund manager’s lobbying has drawn criticism from other big emerging-market investors, which boiled over at a client dinner hosted by Bank of America in London last month. In a heated exchange, Pimco’s Yacov Arnopolin told Ashmore’s Larisa Babushkina that Ashmore was being irresponsible in pressuring the Lebanese government to pay the March bond in full, according to two investors present at the event. Read more