Prime Minister Hassan Diab, in a televised address to the Lebanese, said that the country’s hard currency reserves had reached “critical and dangerous” levels with the need to meet the basic needs of the Lebanese. He called for “fair” negotiations with lenders to restructure the debt.The failure of Lebanon to pay its debts in foreign currencies represents a new stage of a financial crisis that has ravaged its economy since October. The lira has lost about 40 percent of its value, and prompted banks to impose rules that restricted depositors ’dealings in their deposits and fueled the turmoil. The following is a picture of the Lebanese economic crisis and its direct and deferred repercussions in numbers.
Lebanon’s debt ..
The state’s decision means failure to pay the debts owed to it, to restructure the public debt, which in Lebanon amounts to more than $ 86 billion, and to renegotiate with creditors.March maturity
The decision came two days before it was due to repay one billion and 200 million dollars in Eurobonds.
Merits: April and June
The government will be facing two other entitlements in April and June, with a value of two billion and 500 million dollars.
Generally, the value of the international bonds due on Lebanon is $ 31 billion.
What are the options for creditors?
In the event of negotiations failing, one of the options of the creditors that were leaked is to resort to the right to sue the central bank. With the insinuation that Lebanon’s gold reserves may turn into a primary target for creditors, especially if specialized funds purchase bonds owed to countries that default.
While a rescue plan must be put in place, observers fear the government will impose more taxes on Lebanese people, who already suffer from high levels of poverty and unemployment.
The crisis is considered the greatest threat to Lebanon’s stability since the end of the civil war that lasted from 1975 to 1990.