Report: Cabinet to Focus on Economic, Monetary Issues Tuesday

The government is expected to discuss monetary and economic matters during a meeting at the Grand Serail, al-Joumhouria daily reported on Tuesday.

Ministerial sources told the daily that ministers will address the issue of Eurobonds after Lebanon's decision to default on their payment.

“Lebanon is negotiating with creditors and the feedback is turning positive,” said the sources, adding “it will have a positive impact on the government’s approach to restructure its debt.”

Earlier in March, Lebanon suspended payment of $1.2 billion in loans, marking the crisis-hit country's first-ever default on its sovereign debt amid ongoing popular unrest.

Credit ratings agency Moody's had warned that Lebanon's first-ever default on paying its sovereign debt will likely lead to significant losses for private creditors as well as serious implications for the country's banking sector.

Lebanon has been engulfed in a financial and economic crisis that has worsened since October, when the country was rocked by nationwide protests over widespread corruption and decades of mismanagement by the ruling political class. Street demonstrations have been minimal since the outbreak of the new coronavirus.

The default marked a new chapter in Lebanon's economic crisis and could have severe repercussions on country, risking legal action by lenders that could further aggravate and push Lebanon’s economy toward financial collapse.