Eurobonds: A revived debate on the debt the state and BDL would rather forget

While the Banque du Liban (BDL, central bank) and the government continue to spar over what the state’s obligations to the financial sector, another debt remains unresolved: the eurobonds. Since the default in March 2020, no offer has been made to creditors, while $31.3 billion in principal remains unpaid and interest continues to accumulate.Creditors are awaiting the next mission of the International Monetary Fund (IMF), announced for before the end of September, but more importantly, progress on the financial regularization and deposit restitution law, known as the "financial gap" law, and the new medium-term fiscal framework (MTFF). The new framework will have to determine how much the state can devote to bank losses, reconstruction and its debt without triggering another bankruptcy.Added to this are the $11 billion in...