Lebanon opts to default on $1.2bn Eurobond debt – The National

Lebanon opts to default on $1.2bn Eurobond debt – The National

Prime Minister Hassan Diab says government decided to suspend payment so it could continue to provide basic commodities to the people. Foreign currency reserves have fallen to "a worrying and dangerous level which pushes the Lebanese government to suspend payment of the March 9 Eurobond maturity because of a need for these funds," Mr Diab said in an address to the nation following a cabinet meeting on Saturday.. "The decision to suspend payment is the only way to stop the attrition and protect our national interests, while at the same time launching a comprehensive reform programme.". Mr Diab said Lebanon's debt reached $90bn, or 170 per cent of GDP, making it one of the highest in the world.. He Lebanon's debt was "greater than the country can handle" in the current circumstances and the country would strive to restructure its debt through negotiations with bondholders.. Mr Diab said Lebanon's foreign currency reserves had "reached a critical stage", leading the government to suspend its debt payment so that it can continue to provide basic commodities to the Lebanese people.. Prior to the cabinet meeting, Antoine Choucair, the general director of the presidency, said there was little support for the repayment of