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Lebanon’s Bond Restructuring Faces More Delays After Election

May 20, 2022, 7:13 AM

Lebanon’s creditors are bracing for an even longer wait for a debt restructuring deal after an inconclusive parliamentary election cast more doubt about the country’s ability to deliver reforms needed to unlock crucial International Monetary Fund aid.

With no alliance winning a clear majority in Sunday’s elections, it’s not clear the deeply divided legislature can quickly form a new government, let alone bolster efforts to gain IMF cash. A deal with the Washington-based lender is seen as a prerequisite for a restructuring that could benefit bondholders.

Two years after default, Lebanon’s international bonds are languishing near record lows ...