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Eurobonds cross-default: a one-year anniversary - Executive Magazine


Eurobonds default: a one-year anniversary
Is Lebanon running out of options?
It has been one year since the Lebanese government defaulted
on a USD 1.2 billion Eurobonds issuance that was due on March 9
th
2020. One year on, negotiations with Eurobond holders have still not begun, and
no good faith discussions with the International Monetary Fund (IMF) have been
engaged in order to help negotiate a financial aid package and also on engaging
stakeholders.
The default on the payment, the first in Lebanon’s history, resulted in a default on all Eurobonds issuance, due to specific clauses in the Eurobonds issuances: should a default on a Eurobonds issuance occur without agreeing on restructuring terms with 75 percent of the holders of this issuance, this would trigger a default on all outstanding Eurobonds, which totals USD 31.3 Billion, of which USD 11 billion are held locally by Lebanese banks. ....

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