The Association of Banks in Lebanon issued the following press release:

In the upcoming weeks, Lebanon will be facing imminent financial dues, of which the most important are the Eurobonds due in March, causing considerable controversy for some parties as for the decision whether to pay these bills or not, to the contrary of the state’s declaration about Lebanon’s commitment to its financial obligations as a permanent and consistent policy.

Failure to pay Lebanon's external debt is a significant event that needs to be approached with great accuracy and reckoning, and what is needed now is rescheduling or restructuring of the debt after reaching an understanding with the creditors. The accomplishment of this matter requires time, communication and mechanisms that conform to international standards and similar approaches adopted by other countries and calls for the use of the competent international bodies to build credible financial and monetary programs.

It is quite evident, however, that the remaining period until the debt’s maturity in March is very short and does not allow preparation and efficient handling of this important national case.

Therefore, the Association of Banks in Lebanon sees that March’s due should be paid on time and the required measures to treat the public debt issue should be immediately taken, in order to protect the depositors’ interests, to maintain Lebanon’s position in international financial markets and to safeguard its relations with correspondent banks and external creditors.

The ABL also notes that the way the new government will deal with this important financial event will indicate the path it will take to deal with the international community in the future.

The Communication & PR Department