The republic oflebanon plans to use its own foreign exchange reserves to repay US$1bn of bonds due in June and August, according to a treasury source. "We have cash for the upcoming maturities," the source said. Under Lebanon's existing budget laws, the sovereign cannot print any more new debt this fiscal year. However, refinancing outstanding debt by exchanging old bonds for new would not contravene the law, leaving the possibility of a debt exchange open, said the source. Lebanon has not contacted international banks with a request for proposals for a new deal.
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