Lebanon's finance minister announces steps toward 'fair' Eurobond restructuring

Caretaker Finance Minister Youssef Khalil announced that “despite the difficult times we are living through, Lebanon remains committed to reaching a fair solution regarding the restructuring of Eurobond debt.”  

Khalil stated that with the extension of the statute of limitations deadlines, bondholders would not need to take legal action due to expired timeframes, allowing them to participate in an organized and consensual restructuring of the bonds.  

He explained that this decision also serves the interests of bondholders or creditors by extending the statute of limitations deadlines and providing an opportunity for a structured restructuring of the Eurobond portfolio. 

This approach ensures fairness to all creditors and spares them the need to file lawsuits against the state—a scenario that was anticipated if the deadlines expired without an extension.  

During its session on January 7, 2025, the Cabinet unanimously approved a decision to suspend the Lebanese state’s right to invoke the statute of limitations defenses against claims by Eurobond holders issued under New York law or any other applicable deadlines, whether contractual or otherwise, until March 9, 2028.  

The Cabinet also authorized the finance minister to take all necessary or appropriate measures to implement this decision, including amending the terms of the Eurobond issuances.