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By Tiziana Di Giovannandrea 07 March 2020 Lebanon is in default. Prime Minister Hassan Diab announced at a press conference, at the end of an Executive meeting, that Lebanon had decided to suspend the payment of bonds issued in foreign currency for a value of 1.2 billion dollars. The bond deadline is dated March 9, 2020.It is the first time in the history of the Middle Eastern country that such a circumstance has occurred.
The prime minister explained that negotiations will be launched to restructure the debt or to renegotiate the deadlines: "Lebanon is suspending the repayment of the debt of March 9 in order to meet the needs of its citizens. This decision has not been easy. It is the the only solution to protect the public interest, in parallel with the launch of a global reform plan. Our decision stems from our attachment to the interest of the Lebanese, "he announced.
Failure to repay the bonds occurs because Lebanon is unable to repay creditors, in whole or in part, of its debt according to what was established at the time of subscription.
The deadline of March 9 is the first of a series of three relating to 2020. The other two deadlines are expected in April and June, for a total of approximately $ 2.7 billion in capital and over 2 billion in interest to be paid. for all issues. Lebanon's public debt amounts to around $ 92 billion, roughly double the gross domestic product.