Lebanon faces ‘tough task’ as IMF talks restart, Capital Economics says – The National

Lebanon faces ‘tough task’ as IMF talks restart, Capital Economics says – The National

Lebanon faces a "tough task" ahead to secure funds from the International Monetary Fund after Lebanese authorities began technical talks with the multilateral lender last week to pull the country out of its deep financial crisis, according to Capital Economics.

For starters, the debt-laden country will have to restructure its defaulted Eurobond debt to even secure an IMF deal, as the fund will not lend if it considers a country’s debt to be unsustainable, Capital Economics said in its Mena Economics Weekly report.

"Given previous attempts to negotiate with foreign creditors, this will prove difficult," the UK economic research consultancy said. "Haircuts of over 90 per cent may be needed and complications with collective action clauses will lengthen the process."