Lebanon Dollar Bonds Hit Record Low

The dollar bonds of the State of Lebanon hit record low levels ahead of a scheduled meeting between the country’s new Finance Minister Ghazi Wazni and the International Monetary Fund (IMF).

Refinitiv data showed that Lebanon's dollar bonds, issued for April 2020 fell 2.7 cents in the dollar to 77.5 cents.

Both editions of 2022 and 2035 fell 1.6 cents to trade, just above 45 cents and 40 cents at record low, respectively.

This comes ahead of a meeting on Saturday between Wazani and the IMF officials.

Last Tuesday, Lebanese President Michel Aoun signed the decree forming the new government headed by Hassan Diab.

Meantime, Investors are still concerned over the stability of the government, citing uncertainty over a successful IMF involvement.

"The appointed government has very little public support and it is only a matter of time until the protests will be surging again. If they were to take the IMF medicine, it could heighten the restructuring risk," Senior Macro Strategist at Union Bancaire Privée (UBP) Koon Chow said.