Lebanon to Ask for 7-Day Grace Period for Eurobond

Business

February 27th, 9:12am

Asharq Al-Awsat

FILE PHOTO: A general view shows a street hosting banks and financial institutions, known as Banks Street, in Beirut Central District, Lebanon September 28, 2018. REUTERS/Jamal Saidi/File Photo

Lebanon intends to ask for a seven-day grace period for a $1.2 billion Eurobond that matures on March 9, as it is entitled to, in order to give financial advisers more time to draft a restructuring plan, a government source said on Thursday. Lebanon would seek the seven-day grace period ahead of the March 9 date, the source told Reuters. The Lebanese government this week appointed US investment bank Lazard and law firm Cleary Gottlieb Steen & Hamilton LLP as its financial and legal advisers on the widely expected debt restructuring. Lebanon's long-brewing economic crisis came to a head last year as capital inflows slowed and protests erupted against the ruling elite over corruption and bad governance - root causes of the crisis. Lebanon on Wednesday paid $71 million in coupons due on Eurobonds maturing in 2025 and 2030, a source familiar with the matter said. Credit ratings agency S&P lowered Lebanon's debt grade a notch on Friday, but warned a further cut is possible should the government miss the Eurobond payment to creditors. S&P Global Ratings lowered the sovereign credit rating to CC from CCC with a negative outlook, the agency said in a statement.

from Asharq AL-awsat https://aawsat.com/english/home/article/2152346/lebanon-ask-7-day-grace-period-eurobond