Eurobonds recover after clarifications on debt. Highest increase in almost a month

Eurobonds recover
after clarifications on debt
Highest increase in almost a month
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Prices of Lebanese dollar-denominated Eurobonds have partially recovered after reassurances from top officials that debt restructuring is out of the question.

Eurobonds maturing in 2037 plummeted from $75.4 to $70.75 on Jan.11 following a press report on Jan. 9 about a possible debt restructuring. They were trading Monday at $72.25.

The 2025 issue of the Eurobonds partially recovered to $76 on Monday from $74.5 on Jan. 11. They had closed at $79.4 on Jan. 9.

Bonds maturing in November 2019 closed at $96 on Jan. 9. They tumbled to $92 on Jan. 11, and rebounded to $94.25 on Monday.

The bonds registered their highest increase in almost a month on Monday, according to Bloomberg. The rebound came after a record low last week following remarks attributed to Caretaker Minister of Finance Ali Hasan Khalil claiming that the government plans a debt restructuring.

“The issue of restructuring the public debt isn’t on the table at all,” Khalil said on Sunday following a meeting that included the President of the Republic, the Caretaker Prime Minister, the Governor of the Central Bank, the Caretaker Minister of Economy, and the Chairman of the Association of Banks.

President Michel Aoun said that he wanted to reassure everyone that bonds and deposits will be paid on maturity: “We have to help ourselves by taking fiscal reform measures.”
Reported by Shikrallah Nakhoul
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Date Posted: Jan 14, 2019