Minister of Finance walks back on debt restructuring report
2019-01-10
Government committed to Eurobond holders

Caretaker Minister of Finance Ali Hassan Khalil said that the government is committed and will remain committed to its Eurobond issuances and to holders of these bonds.

Khalil’s statement came following a heavy sell-off of the country's dollar-denominated bonds that was triggered by an earlier press report citing him as saying that the Ministry of Finance (MoF) is studying the possibility of debt restructuring.

Khalil said that the MoF is still studying ideas for managing the debt and its structure. It is a voluntary plan and it is part of the reforms pledged by the government at the CEDRE donor conference which include reducing the fiscal deficit, Khalil said according to Reuters. The MoF has prepared the plan for the new Cabinet, once it is formed, and no steps have yet been taken, he said.

“This matter requires decisions in Cabinet, the involvement of parliamentary blocs and the Central Bank (BDL), and others who are concerned with the solutions that we will propose to spare Lebanon dramatic developments,” Khalil said. “We must strive to increase tax collection, and to review public debt servicing,” he said.
Caretaker Minister of Economy and Trade Raed Khoury said, according to Bloomberg, that there’s definitely no restructuring for debt, and that bondholders and depositors are extremely safe.
 
 
Reported by Shikrallah Nakhoul
Source : Businessnews

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