Lebanon set to issue $1.7B in Eurobonds
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. –