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08 March 2020
HALAL ECONOMY

Lebanese banks considering committee for debt talks with government

The committee would represent local lenders in any future talks and the banks have also been approached by financial advisers

Lebanese lenders hold almost $14 billion of government Eurobonds/Bloomberg

by Bloomberg

Lebanese banks are considering setting up a committee that would handle negotiations with the government in case it announces a sovereign debt restructuring.

Lebanese lenders hold almost $14 billion of government Eurobonds, or around half of the outstanding stock and have lobbied against a default. But lawmakers say restructuring is necessary to help preserve the country’s dwindling foreign-exchange reserves.

The government is due to decide on whether it will make a $1.2 billion bond repayment due next week.

Last month, the government hired Lazard and law firm Cleary Gottlieb Steen & Hamilton to help ministers decide whether or not to default on its obligations.

Distressed-debt investors Greylock Capital Management, Lugano-based Mangart Capital Advisors and other bondholders have already formed a group for potential discussions.

 


RELATED STORIES: Eurobonds

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