Beirut: Lebanon has issued 1.5 trillion pounds (Dh8.5 trillion) in seven-year government bonds, the longest period for bonds denominated in the local currency, the lead local bank announced last Saturday.
Banque Byblos, in its weekly bulletin, said that the bonds — maturing only in 2017 and with a 7.9 per cent coupon rate — aim to help the government shift the financing of the deficit and the composition of Lebanon's public debt from foreign currencies to the Leban-ese pound.
Confidence reflected
Finance Minister Raya Al Hassan told reporters the issue was heavily subscribed.
"This reflects the confidence of Lebanese and foreign investors in Lebanon's pound and its economy," Al Hassan commented.
Despite a solid banking sector, Lebanon has a public debt of nearly $51 billion, 156 per cent of GDP in 2009, accumulated since the end of its 1975-1990 civil war.
