Lebanon set to decline to pay an external debt and ask technical help from the IMF

Senior Lebanese government officials are expected to decline to pay an external debt on schedule time and are looking for specialized help from the International Monetary Fund (IMF). 

On Wednesday, Lebanese President Michel Aoun cautioned that “everybody who reached out to the treasury will be examined as per the law before a special court dealing with financial crimes toward public capital.”

He included: “The economic and financial crises that Lebanon experiences can never be resolved easily and will require serious measures for the Lebanese, and cost higher.”

Lebanon needs to pay an external and domestic debt of $1.2 billion. The debt comprises of treasury bonds given by the Ministry of Finance in March 2010 for a time of 10 years, with a yearly interest of 6.375%. About $800 million is the external debt, while the domestic debt is approximately $400 million.

The legislature is pushing toward building up a program to demand specialized assistance from the IMF and start discussions with the creditors based on the opinion of the IMF, a source close to Minister of Finance Ghazi Wazani disclosed to Arab News.

A financial specialist faithful to the political adversary in Lebanon disclosed to Arab News, as an anonymous, that “Lebanon can delay the debt payment in one situation when it has a united plan to present to the bankers and let them know about the solution

The financial experts brought up that “there are the individuals who state that paying the debt will be from the accounts of the depositors in banks. If that is right, what will occur? Is this the plan that you will present to the creditors and IMF? For what reason was this program not added to the ministerial statement to gain certainty based on it in parliament?”

The Association of Banks in Lebanon asked the administration to pay the debt at the listed time. The affiliation said that Lebanon “has already promised to meet its financial commitments.”

They added that the inability to pay Lebanon’s external debt ought to be pondered cautiously

The International Support Group for Lebanon focused on Beirut must “actualize concrete, valid and complete reformations immediately and control the growing crises, and to satisfy the necessities and requirements of the Lebanese citizens,” Arab News reported.Read more about arab politics news.

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