Lebanon’s Cabinet voted unanimously at a session Saturday afternoon not to pay the $1.2 billion Eurobond due March 9 and seek out restructuring agreements, local media reported.

The country was due on March 9 to repay a $1.2-billion Eurobond, while another $700 million matures in April, and a further $600 million matures in June.

But Prime Minister Hassan Diab said that foreign currency reserves have fallen to “a worrying and dangerous level which pushes the Lebanese government to suspend payment of the March 9 Eurobond maturity because of a need for these funds.”

“The Lebanese state will seek to restructure its debts, in a manner consistent with the national interest, by entering into fair negotiations…with all creditors,” he said in a live address.

Source: AFP