Lebanese finance minister denies report he proposed bond swap

Lebanese finance minister denies report he proposed bond swap
March 4, 2020, 11:43 am

Members of IMF experts are seen leaving after meeting with Lebanese Prime Minister Hassan Diab at the government palace in Beirut, Lebanon. (Reuters)

Lebanese Finance Minister Ghazi Wazni has denied reports that he proposed a bond swap, and Lebanese banks are yet to respond to his proposal, according to a Reuters source.

Different proposals for Lebanon’s $1.2 billion eurobond payment due March 9 are still being floated. Wazni reportedly suggested Lebanon swap local banks' holdings in the debt for a new bond paying less interest, and to continue paying the Eurobond debt.

Local outlet al-Akhar first reported Wazni's proposal, and a Reuters source later confirmed.

The government had previously said a decision on the bond would be made either Friday or Saturday.

Whether to pay the bond is currently being debated in Lebanon, which engaged with talks with the International Monetary Fund last week on the issue, as well as how the country that is in the midst of economic crisis should handle its large debt burden.

source: Reuters

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