Lebanese lawmakers approved a 2020 budget plan with a crucial Eurobond payment weeks away, leaving it to the new government to decide on whether to pay creditors or save what’s left of the country’s reserves.The market already assumes a default is n the way.
The fiscal program passed on Monday by a vote of 49 to 13, with eight abstentions. The legislature approved the budget that envisages a 6% deficit, a far cry from a goal set by Lebanon’s former government to bring it close to zero. It includes no new taxes.
LONDON, Oct 29 (Reuters) - Lebanon’s sovereign dollar-bonds suffered fresh falls on Tuesday in the wake of a stark central bank warning, with yields of issues maturing in the next 18-months climbing to around 30%.What is the point of a deficit, in accounting under the circumstances?
The interest charges will not be aid, not with yields of 30% So pricing of government goods is completely broken and this budget is mainly the legislature choosing the items it wants to avoid cutting.
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