Khalil: No Intention to Restructure Debt or Violate Holders Rights

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Caretaker Finance Minister Ali Hassan Khalil stressed Friday that there was “absolutely no intention of touching the value of Lebanese bonds” or to “restructure” the country's debt.

“There is absolutely no intention of touching the value of Lebanese bonds or taking a percentage of them,” Khalil said.

“The proposals are an operation to organize and manage the debt and to move ahead with reform measures that reduce the burden of it,” he clarified, after a media report caused Lebanon’s dollar-denominated sovereign bonds to tumble for a second day.

The media report apparently carried an inaccurate headline that mixed up the words “reschedule” and “restructure.”

Khalil said such a rescheduling would be undertaken in coordination with lenders and the central bank.

There is “no intention to restructure or to violate the rights of holders of sovereign debt instruments in any way at all,” the minister stressed.

SourceNaharnet
Comments 5
Thumb justin 10 days

Play on words as much as you like but people are not fooled. Lebanon's economy is in a shambles and the treasury is on the verge of total bankruptcy.

Thumb s.o.s 10 days

I recently tried to withdraw money from my savings, I wasn’t allowed to! The bank manager said to me that rules have changed since last year. I now have to withdraw within a 3 day window yet prior to this I could withdraw a certain percentage of the amount. I think it was limited to 20% of the savings or so.

I am worried and I’m considering closing the whole thing. No bank can be trusted if the economy collapses.

Thumb warrior 10 days

Banks provide liquidity to the treasury to service the national debt. This liquidity comes from bank deposits (people's money). The example you provided shows how tight the situation is. What Khalil is referring to is Lebanon's inability to service its debt and pay the creditors on time. Hence, the request to reschedule the debt. It is a precursor to default.

Thumb s.o.s 9 days

It’s definitely scary.

Thumb whyaskwhy 10 days

His quotes are intended to appease those incapable of understanding or accepting reality. He is another politician with a background of having done nothing for the nation but lots for his cult at the cost of the nation.