Lebanese Eurobonds still stuck between 6 and 7 cents

Eurobonds, dollar debt securities issued by the Lebanese state, are still trading between 6 and 7 cents on the secondary market (the one where existing financial securities are traded), according to information compiled by the department. research from Bank Audi.

This represents an average of 6.5 cents over the 29 series of issues available, on which the Lebanese state defaulted almost three years ago, and whose maturities extend from March 9, 2020 to March 23, 2037. All of these securities represent 31.314 billion dollars. The maturities of six issues have already expired. The last installment due was to be repaid on October 4, while the next is scheduled for January 27, 2023.

Still cheaper than Venezuela

In early June, Lebanese Eurobonds (Leban Eurobonds) became the cheapest in the world in the category of sovereign bonds (issued by States) by stabilizing around the current level, thus doing less well than the Venz Bonds of Venezuela.

A status that they still hold given that the Lebanese leaders have not launched the reforms in exchange for which the International Monetary Fund (IMF) would agree to release financial assistance of 3 billion dollars over four years and that the negotiations with the holders of these obligations show no apparent progress.

The Lebanese state is judged as failing by the three main financial rating agencies. The country is rated ā€œCā€ (default with little chance of recovery) by Moody’s, RD (restricted default) by Fitch and SD (selective default) by Standard & Poor’s. Lebanese public debt reached $101.6 billion at the end of July in nominal value, according to the latest figures from the Ministry of Finance. In real value, this amount is virtually close to 10 billion dollars taking into account the depreciation of Eurobonds and the impact of the collapse of the Lebanese pound on the Treasury bonds issued by the country. The Banque du Liban and the Lebanese banks hold a substantial portion of this debt.

Eurobonds, dollar debt securities issued by the Lebanese state, are still trading between 6 and 7 cents on the secondary market (the one where existing financial securities are traded), according to information compiled by the department. research from Bank Audi. This represents an average of 6.5 cents across the 29 series of shows available, on…

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