Government to ask for
grace period for Eurobond

Lebanon pays $71 million

in coupons due on bonds

The government will ask for a seven-day grace period for the $1.2 billion Eurobond that will mature on March 9, the Reuters news agency reported citing a government source.

Lebanon is entitled to the grace period which aims to give financial advisers more time to draft a restructuring plan, the source said.

On Tuesday, the government appointed two US-based firms to act as legal and financial advisers on public debt restructuring. Cleary Gottlieb Steen & Hamilton LLP will act legal adviser. Asset management company Lazard will act as financial adviser.

On Wednesday, one day after the appointment of advisers, the government paid $71 million in coupons due on Eurobonds maturing in 2025 and 2030, a source familiar with the matter told Reuters.

Total Eurobond payments of $3.4 billion will be due between March and June this year. These consist of principal payments of $2.5 billion and coupon payments of $875 million.

Public debt stood at $91.6 billion at the end of 2019.