Lebanon’s Creditors Adopt Crash Position as Default Risk Worsens

Investors are braced for more losses on Lebanese bonds as Beirut faces urgent calls to restructure its towering debt pile, the Financial Times reported. The value of Lebanon’s sovereign debt has plummeted since rating agencies pushed the dollar bonds even deeper into junk territory earlier this month. The country’s two-year bond has lost a quarter of its value over the past 30 days and now trades at 64 cents on the dollar. Meanwhile, hundreds of thousands of Lebanese have taken to the streets to protest at government mismanagement and the deteriorating economic situation — demonstrations which forced the prime minister’s resignation at the end of last month. Beirut has one of the world’s biggest debt burdens, projected at 155 per cent of gross domestic product by the end of 2019, but has always met payments to creditors. Read more