If the government decides to refinance Lebanon's massive debt, it should be orderly and include negotiations with debt holders as foreign funds are ready for such discussions, the head of Lebanon's banking association said Wednesday.
Lebanon is going through its worst financial and economic crisis since the end of the 1975-90 civil war after decades of corruption and mismanagement by the ruling elite. Nationwide protests broke out in mid-October against the country's rulers, after which banks closed for two weeks, triggering a run on the banks and worsening the crisis.
Chairman of Association of Banks in Lebanon Salim Sfeir made his comments after meeting Prime Minister Hassan Diab, during which they discussed Eurobond debt due in 2020 worth $2.5 billion.
The first to mature are Eurobonds worth $1.2 billion on March 9, and Lebanese officials have been discussing whether to pay on time as they have always have or default.
Sfeir's comments came a day after Fitch Ratings said Lebanon's financial situation points to a likely restructuring of the country's debt and financial sector to preserve declining foreign currency reserves.
Sfeir said in a statement after the meeting that if the government makes a decision on rescheduling the debt they should "negotiate with bond holders especially foreign funds who have expressed until now readiness to negotiate."
"Any decision regarding Eurobonds is a decision that should be taken by the government only in accordance to what it sees as the good of Lebanon," he said, adding that the bank association's aim is to preserve the money of depositors.
Earlier on Wednesday, Parliament Speaker Nabih Berri was quoted by a member of his parliamentary bloc as saying that “restructuring the debt is the best solution.” There was no elaboration.
A delegation from the International Monetary Fund is scheduled to begin a three-day visit to Lebanon on Thursday, meeting with officials to give an assessment on what is needed to save the plummeting economy.
Lebanese banks have imposed capital controls to managedeclining foreign currency reserves and have prevented transfers outside the country except for emergencies. Lebanon's economy has depended heavily on U.S. dollars since the 15-year civil war ended in 1990.
Lebanon has one of the highest debt to GDP ratios in the world, standing at about $87 billion or more than 150% of the country's GDP. Most of the debt is held by local lenders but there are concerns that if Lebanon defaults, some foreign investors might take legal action against the tiny Arab country.
NICOSIA, Cyprus (AP) — The governments of eight European Union member states said Friday the situation in Syria should be re-evaluated to allow for the voluntary return of Syrian refugees back to their homeland.
In a joint statement, officials from Austria, the Czech Republic, Cyprus, Denmark, Greece, Italy, Malta and Poland said they agree on a re-assessment that would lead to “more effective ways of handling” Syrian refugees trying to reach European Union countries.
The eight countries, which held talks during a summit meeting in the Cypriot capital, said the situation in Syria has “considerably evolved,” even though complete political stability hasn't been achieved.
Cyprus has in recent months seen an upsurge of Syrian refugees reaching the island nation primarily from Lebanon aboard rickety boats.
Earlier this month, the EU announced a 1 billion euro ($1.06 billion) aid package for Lebanon aimed at boosting border controls to halt the flow of asylum seekers and migrants to Cyprus and Italy.
The eight countries said the EU should further boost support for Lebanon to "mitigate the risk of even greater flows from Lebanon to the EU.”
“Decisions as to who has the right to cross a member state’s borders, should be taken by the government of the relevant member state and not by criminal networks engaged in migrant smuggling and trafficking in human beings,” the joint statement said.
The call comes a day afte r 15 EU member countries publicly called for the bloc to boost partnerships with countries along migratory routes in hopes of heading off attempts to reach EU countries.
The countries said that while they “fully embrace” the need to support Syrian refugees in line with international law, they hoped their talks could open a wider debate within the 27-member bloc on the process of granting the migrants international protection.
“What European citizens want from us ... are solutions, practical, realistic solutions that can be implemented,” said Greek Migration Minister Dimitris Kairidis.
Cypriot Interior Minister Constantinos Ioannou said the United Nations' refugee agency has already “established lines of communication” with Syrian authorities regarding possible voluntary returns in line with international law.
The Cypriot minister said returns would initially be on a voluntary basis, but that could develop into forced returns at a later stage. Much more needs to be done for that to happen because the government of Syrian President Bashar Assad isn't recognized by the EU, he said.
In Lebanon, where anti-refugee sentiment has been surging recently, more than 300 Syrian refugees returned to Syria in a convoy earlier this week.
Lebanese officials have long urged the international community to either resettle the refugees in other countries or help them return to Syria.
Cyprus' interior minister Konstantinos Ioannou, right, talks to the media during a press conference as his counterparts Austria's Gerhard Karner, left, and Czech's Vít Rakusan stand by during the Ministerial Summit Migration and Syria Dynamics in capital Nicosia, Cyprus, Friday, May 17, 2024. The governments of eight European Union member states say the situation inside Syria should be re-evaluated to allow for voluntary returns of Syrian refugees back to their homeland. (AP Photo/Petros Karadjias)
Cyprus' interior minister Konstantinos Ioannou, second right, talks to the media during a press conference as his counterparts Austria's Gerhard Karner, left, Czech's Vít Rakusan, second left, and Greece's Minister Of Immigration and Asylum Dimitris Kairides, right, stand by, during the Ministerial Summit Migration and Syria Dynamics in capital Nicosia, Cyprus, Friday, May 17, 2024. The governments of eight European Union member states say the situation inside Syria should be re-evaluated to allow for voluntary returns of Syrian refugees back to their homeland. (AP Photo/Petros Karadjias)
Cyprus' interior minister Konstantinos Ioannou, second left, talks with his counterparts Austria's Gerhard Karner, left, Czech's Vít Rakusan, right, and Greece's Minister Of Immigration and Asylum Dimitris Kairides, second right, stand by, during the Ministerial Summit Migration and Syria Dynamics in capital Nicosia, Cyprus, Friday, May 17, 2024. The governments of eight European Union member states say the situation inside Syria should be re-evaluated to allow for voluntary returns of Syrian refugees back to their homeland. (AP Photo/Petros Karadjias)
Cyprus' interior minister Konstantinos Ioannou, left, talks with his counterparts Austria's Gerhard Karner, right, Czech's Vít Rakusan, second right, and Greece's Minister Of Immigration and Asylum Dimitris Kairides, second left, during the Ministerial Summit Migration and Syria Dynamics in capital Nicosia, Cyprus, Friday, May 17, 2024. The governments of eight European Union member states say the situation inside Syria should be re-evaluated to allow for voluntary returns of Syrian refugees back to their homeland. (AP Photo/Petros Karadjias)
Cyprus' interior minister Konstantinos Ioannou, second left, talks with his counterparts Austria's Gerhard Karner, left, Czech's Vít Rakusan, right, and Greece's Minister Of Immigration and Asylum Dimitris Kairides, second right, during the Ministerial Summit Migration and Syria Dynamics in capital Nicosia, Cyprus, Friday, May 17, 2024. The governments of eight European Union member states say the situation inside Syria should be re-evaluated to allow for voluntary returns of Syrian refugees back to their homeland. (AP Photo/Petros Karadjias)
