Economic Update: Eurobond Developments
On Tuesday, the Lebanese Ministry of Finance announced the completion of an attachment to the Financial Agency governing Eurobond securities issued by the Lebanese Republic. This action stipulates the suspension of the state’s voting rights concerning these bonds in accordance with New York State Law, effective until March 9, 2028. This measure is a direct implementation of Cabinet Resolution 30, passed on January 7, 2025.
The Ministry clarified that this suspension applies uniformly to all Eurobonds issued by the Lebanese state as outlined in the relevant regulations.
Furthermore, the Ministry noted that the amendment was executed under Article 23.1 of the amended Financial Agency Agreement, updated on March 1, 2010. This provision allows the state to make modifications to the agreement without requiring consent from Eurobond holders, provided these changes do not detrimentally affect the rights of any bondholder.
This initiative is aimed at mitigating the risks the state faces due to its obligations to bondholders and is part of a broader strategy to reorganize the Eurobond portfolio effectively.
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