Le­banon set to is­sue $1.7B in Eu­robonds

The Daily Star (Lebanon) - - FRONT PAGE -

BEIRUT: Le­banon is set to is­sue $1.7 bil­lion in Eu­robonds against gov­ern­ment T-bills, Fi­nance Min­istry sources told Reuters Mon­day.

How­ever, a source con­firmed that the move was de­cided upon prior to the po­lit­i­cal cri­sis that erupted in the wake of Prime Min­is­ter Saad Hariri’s res­ig­na­tion on Nov. 4.

“The deal had been post­poned as au­thor­i­ties were mon­i­tor­ing the sit­u­a­tion, how­ever, it will now go ahead,” one source said.

The move, an­other source said, shows that the Fi­nance Min­istry has faith in the sup­port of in­ter­na­tional and lo­cal mar­kets. “The Cen­tral Bank agreed to take these T-bills at re­turns that ex­isted be­fore Hariri’s res­ig­na­tion,” a source said.

De­spite fears for Le­banon’s econ­omy fol­low­ing the prime min­is­ter’s res­ig­na­tion, economists have in­sisted that the Cen­tral Bank has suf­fi­cient tools to pro­tect the Le­banese pound.

Cen­tral Bank Gov. Riad Salameh has re­it­er­ated that BDL has suf­fi­cient for­eign cur­rency re­serves to in­ter­vene in the mar­ket if there is a rush on the dol­lar.

Fi­nance Min­is­ter Ali Hasan Khalil has also sought to ease fears of the po­ten­tial fall­out for the Le­banese econ­omy af­ter Hariri’s shock move. –

Newspapers in English

Newspapers from Lebanon

© PressReader. All rights reserved.