Lebanon CDS soar to record high after president says economic sacrifices needed
August 3, 2019, 11:37 am

Lebanon CDS soar to record high after president says economic sacrifices needed

President Michel Aoun has warned of the risk of harsh financial measures from international institutions.

The cost of insuring exposure to Lebanon’s sovereign debt rose to a record high on Friday after the president warned of the risk of harsh financial measures from international institutions unless sacrifices were made to save the country from economic crisis.

Lebanon’s five-year credit default swaps (CDS) rose to 990 basis points (bps), up 33 bps from Thursday’s close, data from IHS Markit showed.

In a speech on Thursday, President Michel Aoun said: “If we do not all make a sacrifice today and accept to waive some of our benefits, we are running the risk of losing them all, when our country comes to the table of international lending institutions, with all the tough economic and financial schemes that they may impose on us.”

Lebanon’s presidency said on Friday that Reuters had misinterpreted the speech by saying it appeared to raise the possibility of Lebanon having to go to the International Monetary Fund for help if government reform efforts fail.

The presidency’s statement on Friday did not repeat Aoun’s comments on “international lending institutions” and referred only to his remarks about sacrifices. It said “the president’s speech has nothing to do with the Reuters agency’s false interpretations.”

Lebanon’s CDS level has remained elevated in recent weeks, surpassing a surge in January to 940 bps, as the government strives to put public finances on a more sustainable footing with a budget to cut the deficit and a plan to fix the state-run power sector.

Reuters.

Russian police detain prominent opposition activist before protest Extremism continues ... Terrorism Index: 55% of the Brotherhood fatwas incite violence

BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, has sponsored the BuildHer CityHack 2025 Hackathon, a two-day event spearheaded by the College of Engineering and Technology at the Royal University for Women (RUW).
Aimed at secondary school students, the event brought together a distinguished group of academic professionals and technology experts to mentor and inspire young participants.
More than 100 high school students from across the Kingdom of Bahrain took part in the hackathon, which featured an intensive programme of training workshops and hands-on sessions. These activities were tailored to enhance participants’ critical thinking, collaborative problem-solving, and team-building capabilities, while also encouraging the development of practical and sustainable solutions to contemporary challenges using modern technological tools.
BENEFIT’s Chief Executive Mr. Abdulwahed AlJanahi, commented: “Our support for this educational hackathon reflects our long-term strategic vision to nurture the talents of emerging national youth and empower the next generation of accomplished female leaders in technology. By fostering creativity and innovation, we aim to contribute meaningfully to Bahrain’s comprehensive development goals and align with the aspirations outlined in the Kingdom’s Vision 2030—an ambition in which BENEFIT plays a central role.”
Professor Riyadh Yousif Hamzah, President of the Royal University for Women, commented: “This initiative reflects our commitment to advancing women in STEM fields. We're cultivating a generation of creative, solution-driven female leaders who will drive national development. Our partnership with BENEFIT exemplifies the powerful synergy between academia and private sector in supporting educational innovation.”
Hanan Abdulla Hasan, Senior Manager, PR & Communication at BENEFIT, said: “We are honoured to collaborate with RUW in supporting this remarkable technology-focused event. It highlights our commitment to social responsibility, and our ongoing efforts to enhance the digital and innovation capabilities of young Bahraini women and foster their ability to harness technological tools in the service of a smarter, more sustainable future.”
For his part, Dr. Humam ElAgha, Acting Dean of the College of Engineering and Technology at the University, said: “BuildHer CityHack 2025 embodies our hands-on approach to education. By tackling real-world problems through creative thinking and sustainable solutions, we're preparing women to thrive in the knowledge economy – a cornerstone of the University's vision.”