Lebanon Announces Default On $1.2BN Debt Payment In Historical First | WHAT REALLY HAPPENED

Lebanon Announces Default On $1.2BN Debt Payment In Historical First

Lebanon announced Saturday it will default on its Eurobond debt for the first time in its history. The protest-racked country has seen a recent change in government, banks opened for merely about half of the past few months, strict controls on hard currency withdrawals and transfers abroad amid a liquidity crisis, a plummeting Lebanese Lira since October, a run on dollars, and crushing public debt which has lately blown up to nearly 170% of its gross domestic product (now about $89.5 billion).

Prime Minister Hassan Diab confirmed in public statements the bond payment of $1.2 billion due on Monday will not be paid: “The debt has become bigger than Lebanon can bear, and bigger than the ability of the Lebanese to meet interest payments,” he said in a televised address. “We are paying the price for the mistakes of the past years. Must we bequeath them to our children?”

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