|27 January, 2020

Lebanon's bonds fall as debt restructuring decision looms

The sell-off preceded a possible government decision on whether its March bond -- the next due for repayment -- might be included in any debt restructuring.

A money exchange vendor displays Lebanese pound banknotes at his shop in Beirut, Lebanon, November 8, 2017.

A money exchange vendor displays Lebanese pound banknotes at his shop in Beirut, Lebanon, November 8, 2017.

REUTERS

LONDON- Lebanon's government bonds fell to fresh lows on Monday as traders waited on a possible government decision about how it will deal with its debt, including a $1.2 billion Eurobond maturing in March.

An April 2021 issue shed 2 cents to 50.4 cents in the dollar, while an October 2022 bond dropped 1.9 cents to 43.2 cents in the dollar, Tradeweb data showed.

The sell-off preceded a possible government decision on whether its March bond -- the next due for repayment -- might be included in any debt restructuring. Hours after he was named, Finance Minister Ghazi Wazni last week said the government must decide on its approach to the $1.2 billion issue. 

"I suppose market sentiment may be leaning that they may be included [in any debt restructuring]," said Giyas Gokkent, of JPMorgan Securities.

(Reporting by Tom Arnold; editing by Marc Jones) ((Tom.Arnold@thomsonreuters.com; +442075428510; Reuters Messaging: tom.arnold.thomsonreuters.com@reuters.net))

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