Diab: Government has decided to not pay March Eurobond

Prime Minister Hassan Diab addressed the Eurobond issue in a televised speech on Saturday.

PM Diab said that the debt has become greater than the country can bear reaching more than 170% of GDP.

He also added that according to the World Bank, more than 40% of residents will soon be under poverty line.

PM Diab confirmed that the Lebanese Government has decided to not pay Eurobond due on March 9th to protect interests of Lebanese.

PM Diab reiterated that Lebanon was not able to pay maturing debt in the "current circumstances" and would work to restructure its debt through negotiations with bondholders.

He also stated that the banking sector must be restructured and the Government will work to protect people’s deposits especially small deposits.