In March 2020, several large institutional holders of sovereign bonds issued by Lebanon formed a group (the “Ad Hoc Lebanon Bondholder Group” or the “Group”) in response to the deteriorating financial and economic situation in the country and the government’s decision to default on its bonds. Since its inception, the Group has provided a forum for international bondholders and has sought constructive engagement with the Lebanese authorities and other domestic and international stakeholders.
The Group notes the recent announcement of a new Lebanese government and welcomes this long overdue development as a necessary first step towards addressing Lebanon’s ongoing financial, political and humanitarian crisis.
The Group hopes and expects the new government will promote a speedy, transparent and equitable debt restructuring process. Such a process will need the government to engage meaningfully with the International Monetary Fund as well as Lebanon’s international creditors and official sector partners. The aim of the government must be to design and implement a comprehensive program of economic, fiscal and structural reforms in the interest of all stakeholders, and most importantly the long-suffering Lebanese people.
The Group notes that Lebanon’s default on its international bonds has been ongoing for 18 months and requires the new government’s urgent attention. The Group stands ready to work closely with the authorities and other stakeholders to find a sustainable solution.
Holders of Lebanon’s international bonds who wish to learn more about the Group and its objectives may contact the Group’s legal advisor, at:
White & Case LLP