Templeton Sees Lebanon on Road to Debt Default as Crisis Rages

Lebanon just got one of its starkest warnings yet that it will need to restructure its $30 billion of Eurobonds. Franklin Templeton, which oversees more than $690 billion of assets worldwide, said the government will have to renegotiate the debt load to stave off an economic collapse, Bloomberg News reported. “The system is broken and the credibility is gone,” Mohieddine Kronfol, the firm’s Dubai-based chief investment officer for Middle Eastern and North African fixed income, said in a Bloomberg Television interview with Tracy Alloway and Yousef Gamal El-Din. “We need to see some decisive action and some engagement with some multilateral agency or some donor countries to move forward.” Read more

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