Lazard Logo. (Credit: Matthieu Alexandre/AFP)
BEIRUT — Lebanon is leaning toward renewing a contract with global financial advisory firm Lazard, a government source told L’Orient Today.
While no official decision has yet been made, the source confirmed that there is a "government orientation," rather than a firm commitment, toward reengaging with Lazard, as well as the law firm Cleary Gottlieb, under a mandate limited specifically to debt restructuring.
Lazard had previously drafted an economic and financial recovery plan for former Prime Minister Hassan Diab’s government in 2020, a few months after the onset of Lebanon’s economic collapse. The plan became a source of contention, particularly with the Association of Banks in Lebanon (ABL), which categorically rejected it, ultimately leading to its shelving.
This led to the failure of the first round of the negotiations with the International Monetary Fund (IMF) during the same year.
Contacted, senior management at Lazard declined L’Orient Today’s request for comments.
"The government believes it’s more productive to stick with firms that are already familiar with Lebanese files, rather than launch a new selection process," the government source said.
"Both firms played an important role in organizing the meeting between the Lebanese delegation and eurobond holders in Washington during the IMF’s spring meetings in April — and during which the delegation asked requested additional time, citing the extension of the statute of limitations on the bonds, and emphasizing the added challenges posed by the 2024 Israel-Hezbollah war, on top of the 2019 crisis, COVID-19 pandemic, and the Beirut Port explosion."
Finance Minister Yassin Jaber received representatives from Lazard in March — led by Jerome Axis, one of the firm’s directors, who shared the company’s perspectives on potential government reforms and restructuring of Lebanon’s sovereign debt. However, no substantial statements ensued from the meeting.
