Majority of Lebanese MPs oppose paying debt, even if it means default-Berri

A majority in the Lebanese parliament opposes the repayment of Eurobonds that are set to mature even if that leads to default, Parliament Speaker Nabih Berri said on Wednesday.
 
Berri, one of Lebanon's most influential leaders and an ally of the powerful Shi'ite group Hezbollah, backs any government approach apart from repaying the debt, a lawmaker from his parliamentary bloc said.
 
Lebanon, facing a major financial crisis, is widely expected to restructure its public debt, one of the largest in the world compared to the size of the economy. The country has a $1.2 billion Eurobond due on March 9.
 
Berri said banks which recently sold Eurobonds to foreign investors bore responsibility for diluting the local holding, which critics say has weakened Lebanon's position in negotiations with foreign bondholders.
 
"If they want to restructure (the debt) without restrictions or conditions, and without any share of the amount or interest being paid, then so be it," Berri said, according to MP Ali Bazzi, speaking on his behalf.
 
As the clock runs down, Lebanon's government has said it will announce a decision this week on its Eurobonds, which also include issues that mature in April and June.
 
The heavily indebted state is facing an unprecedented economic and financial crisis, which came to a head last year as capital inflows slowed and protests erupted against the ruling elite.