Exclusive , Akhbar al Yawm

In March of the year 2020, Lebanon announced the non-payment of Eurobonds, and until today, without settling this file so far despite its catastrophic repercussions.

In recent days, this file has reappeared, after the price of the bond Eurobond with accrued interest was estimated at around 7 cents, the lowest price for a sovereign bond in the world.

Thus, at a time when no one knows the extent of the State's ability to purchase these Eurobonds, the most important thing remains to begin serious negotiations with its holders in order to achieve results likely to restore confidence in Lebanese state publications.

Faced with this uncertainty, this stumble, this financial and economic deterioration and this loss of confidence in the state, what about Lebanese pound treasury bonds?

An economist and financial expert explains, through the agency "Akhbar Al-Yawm", that the decision of the previous government to default on the payment of Eurobonds was chaotic and harmful, while there were other options as to the possibility of rescheduling Eurobond dues, which had provided very negative repercussions on the economy.

The Economist adds: Since the failure to redeem Eurobonds in March 2020, international rating agencies have warned against any default in the redemption of Lebanese pound bonds, as such a step would put Lebanon in a worse situation. in terms of credit rating, because no country stumbles on debts in its currency. .

In response to a question, the expert clarified that the Lebanese State has so far paid its debts to the Banque du Liban, according to an agreement between the two parties, so that the Central Bank returns the interest to the Public Treasury of one way or another.

In this context, the expert explains that the Banque du Liban is the largest holder of Treasury bonds in Lebanese pounds at 64%, followed by banks with 20%, then 16%, which is held by the Caisse de Sécurité Sociale.

He points out that the value of the debt in Lebanese pounds is estimated at 91 trillion pounds, and at the official exchange rate (1515 LL per dollar) it is around 60 billion and 400 million dollars, and at a rate of exchange of 3 billion and 500 million dollars.

He highlited that the maturities of Lebanese treasury bonds are long-term and do not pose any pressure, since 86.5% of treasury bonds are at five years or more. He points out that the debt in local currencies, i.e. treasury bills, constitutes 61% of the total public debt according to the official dollar exchange rate, and therefore the public debt becomes 43 billion and 700 million dollars at the exchange rate according to the figures reached at the end of last April (i.e. when the exchange rate was banking). Around 26,000 pounds to the dollar).

Pointing out that this public debt is falling, rather it is in continuous decline, given that the 29 thousand exchanged yesterday at the end of last week, the economist points out that there is no reason for the State does not pay interest on bonds issued in its local currency.