News
Latest News
news bulletin
Breaking Headlines
Israel-Gaza War Updates
Variety and Tech
Sports News
Middle East News
World News
Lebanon News
Press Highlights
Lebanon Economy
News Bulletin Reports
Other News
Breaking Headlines
Israel-Gaza War Updates
Variety and Tech
Sports News
Middle East News
World News
Lebanon News
Press Highlights
Lebanon Economy
News Bulletin Reports
Beirut
23
o
Mount Lebanon
23
o
Metn
24
o
Keserwan
24
o
North
23
o
South
23
o
Bekaa
16
o
Live
Video
Audio
Schedule
shows
العربية
watching now
Nightly News Bulletin
SUBSCRIBE
Home
Notification
Live
Video
Audio
shows
Beirut
23
o
Mount Lebanon
23
o
Metn
24
o
Keserwan
24
o
North
23
o
South
23
o
Bekaa
16
o
News
Programs
The News
Breaking Headlines
Israel-Gaza War Updates
Variety and Tech
Sports News
Middle East News
World News
Lebanon News
Press Highlights
Lebanon Economy
News Bulletin Reports
Programs
Documentaries
Lebanon’s Centennial
News Bulletin
The Untold History
Talk Show
Series
Sports
Variety
Other
Comedy
Oldies
Breaking News
Latest News
Highlighted News
Most Read
Videos
العربية
Watch the latest programs and the latest developments on your favorite screen
Shows
Join millions of followers
Who We Are
Contact Us
Advertise With Us
Careers
Channel frequencies
Privacy Policy
Terms and Conditions
Lebanon default "probable", deposit grab "possible" - Fitch
Breaking Headlines
2020-01-17 | 07:18
High views
Share
Share
3
min
Lebanon default "probable", deposit grab "possible" - Fitch
Lebanon’s precarious finances mean the crisis-hit country looks likely to default on its debt in some way and could even launch a Cyprus-style grab for savers’ bank accounts, Fitch’s top sovereign analyst said.
Lebanon’s debt problems have jumped back into focus this week after reports emerged of a bid by authorities there to try and delay some of this year’s bond repayments.
A Lebanese source told Reuters that ratings agencies had told the authorities that the plan would constitute a “selective” or “restricted” default, ending its so-far unblemished rating record and potentially triggering further problems.
Fitch’s head sovereign analyst James McCormack told Reuters a distressed debt event (DDE) is defined as when there is a material reduction in terms. That includes a maturity (payment deadline) extension to avoid a default.
“At the time of announcement, the rating would likely be downgraded to ‘C’. When the exchange was complete, the rating would likely be downgraded to Restricted Default ‘RD’,” he said in an interview. It currently rates it ‘CC’
More would likely follow, McCormack added. Deep in political turmoil, Lebanon is grappling with its worst economic crisis in decades and battered confidence in its banking system.
The risk of default and its need to rethink a 23-year-old currency peg has risen in a country with one of the world’s biggest foreign debt burdens at around 150% of it annual economic output.
“We think the finances are precarious and a restructuring of some sort is probable,” McCormack said.
The timing of it is less clear, though: “When we look at the repayment profile of the government, it looks manageable relative to the size of foreign exchange reserves the central bank has.”
“It looks OK, a little bit tight shall we say, but if the inflows don’t materialize it really becomes more urgent.”
Lebanon has $2.5 billion in Eurobonds due this year including a $1.2 billion bond set to mature in March.
There has been speculation among bankers and in local media - but ruled out by the central bank - that Lebanon could even copy Cyprus’ move when it took money from better-off savers during its debt crisis.
“That is definitely possible but for us on the sovereign side, that is not necessarily a default,” McCormack said.
“A default is narrowly defined as the government not paying its debt obligations on time.”
REUTERS
Breaking Headlines
Lebanon
Economy
Finance
Next
Grand Mufti Derian travels to Saudi Arabia for Hajj
Recommended For You
d-none hideMe
0
Lebanon News
2024-03-27
Breaking news: Israeli aircraft hits cafe in Naqoura
Lebanon News
2024-03-27
Breaking news: Israeli aircraft hits cafe in Naqoura
0
Sports News
2024-03-21
World Cup Asian qualifiers: Match between Lebanon and Australia ends with a 2-0 victory for the host, Australia
Sports News
2024-03-21
World Cup Asian qualifiers: Match between Lebanon and Australia ends with a 2-0 victory for the host, Australia
0
Sports News
2024-03-21
2026 FIFA World Cup qualifiers: The match's first half ends with the Australian team leading the Lebanese team 1-0
Sports News
2024-03-21
2026 FIFA World Cup qualifiers: The match's first half ends with the Australian team leading the Lebanese team 1-0
0
Lebanon News
2024-03-21
Israeli warplanes break sound barrier over Nabatieh and Iqlim al Tuffah, NNA reports
Lebanon News
2024-03-21
Israeli warplanes break sound barrier over Nabatieh and Iqlim al Tuffah, NNA reports
Subscribe to our VOD
SUBSCRIBE
Our visitors readings
d-none hideMe
0
Lebanon News
14:25
Five killed, including Hezbollah fighters, in an Israeli strike in southern Lebanon: Reuters sources
Lebanon News
14:25
Five killed, including Hezbollah fighters, in an Israeli strike in southern Lebanon: Reuters sources
0
Sports News
2024-02-23
Watch Lebanon vs. Syria in the FIBA Asia Cup 2025 Qualifiers at 5:00 PM on LBCGroup.tv or LB2!
Sports News
2024-02-23
Watch Lebanon vs. Syria in the FIBA Asia Cup 2025 Qualifiers at 5:00 PM on LBCGroup.tv or LB2!
0
Lebanon News
09:39
Bou Habib: We will continue to push for the full implementation of Resolution 1701
Lebanon News
09:39
Bou Habib: We will continue to push for the full implementation of Resolution 1701
0
Press Highlights
2023-11-01
Lebanon's post-Gaza war landscape and Hezbollah's arm
Press Highlights
2023-11-01
Lebanon's post-Gaza war landscape and Hezbollah's arm
Videos
d-none hideMe
0
Lebanon News
2023-12-11
Breaking: Israel launches raid north of Litani on Monday (Video)
Lebanon News
2023-12-11
Breaking: Israel launches raid north of Litani on Monday (Video)
0
Lebanon News
2023-11-02
Exclusive to LBCI: U.S. State Department's Wooster Stresses Lebanon Must Avoid War, Sees Renewed Push for Two-State Solution
Lebanon News
2023-11-02
Exclusive to LBCI: U.S. State Department's Wooster Stresses Lebanon Must Avoid War, Sees Renewed Push for Two-State Solution
0
Lebanon News
2023-10-18
Protests Erupt near US Embassy in Awkar Against Israeli Attacks on Al-Maamadani Hospital in Gaza
Lebanon News
2023-10-18
Protests Erupt near US Embassy in Awkar Against Israeli Attacks on Al-Maamadani Hospital in Gaza
0
Lebanon News
2023-10-05
ATFL's Ambassador Edward Gabriel on Navigating Through Economic, Political, and Refugee Crises
Lebanon News
2023-10-05
ATFL's Ambassador Edward Gabriel on Navigating Through Economic, Political, and Refugee Crises
0
Sports News
2023-08-31
Amir Saoud Powers Lebanon to Victory Over Cote d'Ivoire: A Deep Dive Into The Numbers
Sports News
2023-08-31
Amir Saoud Powers Lebanon to Victory Over Cote d'Ivoire: A Deep Dive Into The Numbers
0
Sports News
2023-08-29
France Edges Past Lebanon in a Nail-Biter at FIBA World Cup 2023: A Statistical Deep Dive
Sports News
2023-08-29
France Edges Past Lebanon in a Nail-Biter at FIBA World Cup 2023: A Statistical Deep Dive
0
Lebanon News
2019-02-28
Pierre el-Daher, the man who defeated the Lebanese Forces
Lebanon News
2019-02-28
Pierre el-Daher, the man who defeated the Lebanese Forces
Most read
d-none hideMe
24 hours
7 days
Month
1
Lebanon News
14:25
Five killed, including Hezbollah fighters, in an Israeli strike in southern Lebanon: Reuters sources
Lebanon News
14:25
Five killed, including Hezbollah fighters, in an Israeli strike in southern Lebanon: Reuters sources
2
Lebanon News
15:39
At least eight fatalities reported in Israeli strikes on southern Lebanon, according to Reuters sources
Lebanon News
15:39
At least eight fatalities reported in Israeli strikes on southern Lebanon, according to Reuters sources
3
Lebanon News
02:44
Ministry of Energy urges TotalEnergies to deliver Block 9 drilling results report: LBCI Sources confirm
Lebanon News
02:44
Ministry of Energy urges TotalEnergies to deliver Block 9 drilling results report: LBCI Sources confirm
4
Lebanon News
13:59
LBCI sources affirm 'positive advancements' in US-mediated talks for Lebanon-Israel conflict resolution
Lebanon News
13:59
LBCI sources affirm 'positive advancements' in US-mediated talks for Lebanon-Israel conflict resolution
5
Israel-Gaza War Updates
05:05
Over 1.1 million in Gaza face 'extreme' food insecurity: UN reports
Israel-Gaza War Updates
05:05
Over 1.1 million in Gaza face 'extreme' food insecurity: UN reports
6
Lebanon News
07:51
Lebanon's springtime splendor: A journey through nature's canvas in pictures
Lebanon News
07:51
Lebanon's springtime splendor: A journey through nature's canvas in pictures
7
Lebanon News
16:17
UN Palestinian Refugee Agency suspends teacher in Lebanon
Lebanon News
16:17
UN Palestinian Refugee Agency suspends teacher in Lebanon
8
Israel-Gaza War Updates
03:26
Israeli strikes persist amidst 'intense' clashes in Gaza
Israel-Gaza War Updates
03:26
Israeli strikes persist amidst 'intense' clashes in Gaza
Download now the LBCI mobile app
To see the latest news, the latest daily programs in Lebanon and the world
Google Play
App Store
We use
cookies
We use
cookies
to make
your experience on this
website better.
Accept
Learn More