Lebanon Has More to Worry About Than $31 Billion Maturing Eurobonds

Lebanon has a lot more than just maturing Eurobonds to worry about. In addition to $31bn of those, the Middle Eastern nation’s central bank has $52.5bn of obligations in the form of foreign-currency deposits and certificates of deposit, according to calculations by Toby Iles and Jan Friederich, Hong Kong-based analysts at Fitch Ratings Ltd, Gulf Business reported. Mostly owed to Lebanese banks, these additional debts compound the country’s woes as it grapples with its deepest economic crisis in decades. They also complicate a potential debt restructuring by the government, which on Tuesday confirmed it had hired Lazard Ltd. and Cleary Gottlieb Steen & Hamilton as financial advisers. Falling reserves and inflows have led to a shortage of foreign exchange in Lebanon, causing havoc with the financial system. Read more