Lebanon Businessnews News
 

Banks considering suing
the State over Eurobonds
Accrued interest estimated at $10 billion
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The board of directors of the Association of Banks in Lebanon (ABL) is preparing to sue the Lebanese state over unpaid interest on Eurobonds, estimated to be around $10 billion.

The authorities has yet to engage with bondholders, since its default in March 2020, in debt restructuring negotiations.

The risk of legal action by foreign creditors against the State remains uncertain.

Bondholders have a statute of limitations, or a limited time-frame, within which they can legally claim payments (such as principal and interest) before their right to do so expires. While principal payments generally have a ten-year statute of limitations, interest payments are only valid for five years, setting the initial deadline in this case at March 9, 2025. Earlier this year, the government extended the statute of limitations by three years, pushing the deadline to March 9, 2028. Being taken by a care-taking government, it is not clear whether that extension can withhold a court challenge.
Date Posted: Feb 20, 2025
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