Lebanon bonds rise in dollars … new economic news

“Bloomberg” agency reported today, Wednesday, that the value of Lebanon’s bonds stumbled in the payment increased to more than 20 cents for the dollar for the first time in five years, with investors ’momentum betting on the momentum of political and economic reforms in the country.

“Bloomberg” reported that the value of Lebanon’s dollar bonds due in 2035 increased to 20.7 cents on Wednesday, as 9 of these Lebanese securities came between the 20 largest winners in emerging markets.
The bonds achieved a total return of 250% since last September, equivalent to five times the second return of the developing world, although no dues have been paid on it since 2020.
This height comes after Lebanon came out of a two -year leadership vacuum, and formed an active government. The President, the Prime Minister and the governor of the newly appointed central bank pledged to take firm steps to revive the economy, fill a gap of $ 80 billion in the banking system, and pave the way for debt restructuring. While progress is still slow, investors welcomes gradual indicators that reforms are going in the right direction.
In the context, Surin Morish, a wallet manager at Danska AS Bank in Copenhagen, who bought Lebanese bonds a year ago by 6.5 cents: “We are still reluctant to sell,” adding that with the great rise in the prices of other faltering countries ’bonds, the bonds that range between 15 and 20 cents may be the next goal.
According to “Bloomberg”, a group of creditors formed Lebanese bonds in 2020 for restructuring talks, and initially included “Black Rock”, Amnesty Asset Management “and Manager Capital Management Ltd. What is known as the Ad -Hook Group was expanded this year by including “ADREDL BLC” and the hedge fund “Misaret Capital LLB”. As the grand prize for bond holders remains linked to the restructuring of debt with the value of higher recovery than the current prices, this will not be achieved without resolving the banking crisis and obtaining funding from the International Monetary Fund and regional partners. (The New Arab)