Lebanon has bowed to the inevitable and said it won't be honoring a $1.2 bi...
LONDON - Lebanon has bowed to the inevitable and said it won’t be honoring a $1.2 billion bond payment that was due on Monday. It will be its first default, but what options does one of the world’s most debt-strained countries now have?
It had a “technical” visit from the IMF last month which the Fund said was “very informative and productive” but that won’t cut it. It needs cash and quickly, otherwise the risk is more violence on the streets as the money begins to run out completely. Hezbollah’s leaders have been arguing against IMF involvement, saying the likely terms of a bailout would be so painful that they would spark “a popular revolution”.
Credit rating agency Fitch has said the government may even raid the deposits and savings held in the country’s banks like Cyprus did at the height of its crisis, though the government is saying that won’t happen. Lebanon’s bonds also lack legal wording known as ‘enhanced collective action clauses’, meaning its bonds might need to be renegotiated almost one at a time rather than in one or two big hits as other countries might do.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Coronavirus live updates: Amazon won't dock warehouse workers' pay, US politicians self-quarantineAs of Monday, more than 111,200 cases of coronavirus have been reported, resulting in at least 3,890 deaths.
Read more »
Stock market today: Live updates - CNNGlobal markets are plunging after the implosion of an alliance between OPEC and Russia caused the worst one-day crash in crude prices in nearly 30 years. Oil has since recovered some of its losses. Follow live updates.
Read more »
Amazon won't dock warehouse workers for missing shifts during coronavirus crisisThe company told employees it will not count any unpaid time off during the month of March.
Read more »
Eminem, Mike Tyson Star in Video for 'Godzilla' Featuring Juice WRLDWatch Eminem's trippy new video for 'Godzilla' featuring Mike Tyson and a tribute to Juice WRLD
Read more »
The Adult Pool Floats That Will Be all Over Your Timeline This SummerThese say, 'I pay my own rent, but I'm still on my parents' phone bill.'
Read more »
Former L.A. lawmaker allegedly took cash and 'female escort services' from developerA former LA city councilman surrendered to federal agents Monday after allegedly lying about taking cash and 'female escort services,' in a pay-to-play scheme, authorities say
Read more »