The Lebanese government bonds indicated in dollars, which has been one of the most profitable betting investors in emerging markets over the past year, has faced standard gains to losses of two Khanna (more than 10%), in light of the obstacle of the Lebanese banking sector and the decline in its performance. The bonds achieved a return of about 229% between late September and early March to surpass the effects of 67 other countries listed within the “Bloomberg” index of this group of assets, and this came as a result of a breakthrough in the political scene at the time, because an active government was established for the first time in more than two years, and that he has a lead. But since then, the ties have changed their way and their losses have worsened as geopolitical tensions have increased as a result of the increase in the struggle between Iran and Israel. The recovery of emerging markets stumbles, although these losses represent only a small part of the previous profits, it emphasizes the obstacle of another recovery in the developing world. From Israel to Ukraine and Senegal, to Lebanon, politicians do not pass the radical changes that investors expected in the bonds. Lebanese bond prices are falling as “sales pressure comes from local investors, and there is no prominent news on restructuring,” according to Surain Mork, director of the asset division at the Dansky Bank, who bought these bonds at about 6.5 cents per dollar of their nominal value last year and their rise to 19 cents, before they currently have a resort to about 16.5 cents. A billions of dollars, Mork, who continues to maintain bonds, said the most important issue for mortgage investors in Lebanon The Lebanese authorities’ plan is to address the shortage in the banking system. This is due to a large gap between the dollar banks owed by dollars, and which the depositors can actually withdraw – and this gap is estimated at more than $ 80 billion. This banking gap is one of the main reasons for the collapse of the Lebanese economy and the obstacle in debt in March 2020, and it affects both young and old depositors, but it is still a solution without a solution among the legislators on ways to address it. This led to the disruption of the financing agreement with the International Monetary Fund, and the impediment of possible flow of partners such as Saudi Arabia. Who bears losses? “The crux of the stalemate facing Lebanon is a fundamental question that everyone occupies, but his answer is still unclear: Who will bear the big losses in the banking sector, which amounts to $ 80 billion?” According to Nadine Yamot, professor of economics at the American University of Beirut. Yamot pointed out that the differences between government, the central bank and private banks impeded the achievement of any progress. She said that “commercial banks are trying to protect senior depositors and their interests, while the government’s plan tends to protect the small depositors and restructure the capital of banks.” Lebanese Finance Minister Yassin Jaber said the government is addressing the problem, with its approval that no solution to the spread of losses has been achieved. In a written answer to ‘Bloomberg’, Jaber added that ‘parliamentary discussions are currently taking place to approve legislation for the restructuring of banks that will provide the necessary instruments and the applicable legal framework for the banking, along with the existing banking legislation, as a first step in the course of restructuring.’ The effects of Lebanon without an obstacle of 20 cents per dollar led these dead to the survival of the Lebanese bonds without exceeding the threshold of 20 cents per dollar of their nominal value, which is a matter of various investors, including Mork. Lebanon is still only two countries in the world; Their sovereign effects trade less than 20 cents per dollar of its nominal value with Venezuela. Many investors currently expect the Lebanese effects to decline before the justifications or feasibility of investment will reappear in them. “We are approaching a stage in which clearer numbers will be offered on the table, and I feel that there is an increasing appetite for many banks to move forward.” The restructuring of the stationary debt, Fadi -Soldier, the director of the fixed income -governor at the ‘capital numbers’ in Dubai, says that the core of the investment bet lies in the restructuring of the troubled debt, a step that can pay the prices of bonds to rise to 25 cents per dollar. But he added: “Currently, the potential buyers are waiting and we are waiting for better access levels of about 1 to 3 cents per dollar of the original value of the effects for current prices.”
Lebanon -effects expel profits over 200% with the stumbling of the path of reforms
