Lebanon increases amount of dollar-denominated public debt

Lebanon has increased the amount of public debt held in dollars by swapping local currency debt into $2 billion worth of Eurobonds, the Ministry of Finance said on Friday.

After the change, 59 percent of Lebanon’s public debt will be held in Lebanese lira and 41 percent in US dollars.

The conversion does not change the total value of public debt, the ministry said

Before the change the balance was 61 percent in lira and 39 percent in dollars.

“This process will help reduce the average cost of interest on the exchanged bonds from 7.53 percent to 6.59 percent on the new bonds and will lengthen the average maturity from 7.92 years for local currency bonds, to 9.89 years for the Eurobonds,” the ministry’s statement said.

Reuters