Lebanon’s public debt rises 10.3% y/y to USD 63.3bn at end-November 2013

By bne IntelliNews January 24, 2014

Lebanon’s gross public debt grew 9.9% y/y and 1.3% m/m to LBP 95.35tn (USD 63.3bn) at end-November 2013, easing from a 10.3% growth at end-October, data from the association of banks in Lebanon showed on Jan 24. The public debt, which also rose 9.6% ytd, was lifted by onoging domestic debt issuances to meet budget needs.

On September 26, the finance ministry sold LBP 1.2tn (USD 800mn) worth of LBP-denominated in 10- and 12-year T-bonds to cover public-sector salaries and partially repay external debt up to end-2013. The oversized 180,000-staff public sector, including the military and security services, is responsible for around 35% of the total budget expenses annually, according to official estimates.

Net public debt, which excludes public sector deposits at commercial banks and the central bank from gross public debt, rose 7.4% y/y to LBP 79.5tn at end-November.

The LBP-denominated debt rose 8.9% y/y to LBP 55.9tn (58.7% of the total), lifted by higher subscriptions in T-bills issues. The FX-denominated debt expanded 11.2% y/y to LBP 39.42tn (41.3% of the total gross debt).

Banks held 53.3% of the LBP debt at end-November and the central bank had a 30.1% share. Some 16.6% of the debt was held by the non-banking sector. Eurobonds (90.5%), multilateral (4.6%), bilateral (3.9%), Paris II loans (0.5%) and others (0.5%) constituted the FX debt.

The average maturity of the LBP-denominated government debt securities was estimated at 1,298 days (3.56 years) with a weighted interest of 6.87%. The average maturity of the FX-denominated government debt instruments averaged 5.66 years with a weighted interest of 6.49%.

Related Articles

Ankara and Tehran join wave of anger directed at Trump’s recognition of Jerusalem as Israel’s capital

US President Donald Trump's December 6 announcement that his administration has decided to unilaterally recognise Jerusalem as Israel's capital was described as “against international law” by ... more

Islamic State is finished declares Iran's President Rouhani

Iranian President Hassan Rouhani on November 21 declared the end of the so-called Islamic State militant and terrorist group following decisive battles in Iraq and Syria. Stating that he wished to ... more

Turkey the loser as Baghdad rewards Iran with control of Kurdish oil exports

Iran is taking control of oil exports from Iraqi Kurdistan's giant Kirkuk field with Baghdad authorising the move as a reward for the Iranians' help in quelling the Kurds' late September push for ... more