Lebanese PM Hassan Diab talking to parliament in Beirut (Photo Credit: Mohamed Azakir/Reuters)
Lebanon’s PM Hassan Diab has announced his country is unable to pay the $1.2 billion Eurobond due on March 9 and will default for the first time. This comes amid a government crisis and currency plummeting by 40 percent.

The move to not pay the outstanding debt and to launch upcoming negotiations with creditors was made unanimously at a cabinet meeting before Diab made the announcement on Saturday.

This decision marks the country’s first ever default on its sovereign debt.

Diab says it is impossible to pay creditors at a time when his own country faces so many struggles.

“How can we pay creditors outside while Lebanese cant get their money from their bank accounts? How can we pay creditors while hospitals have a shortage of medical supplies? How can we pay to the creditors while there are people on the streets who cant afford to buy bread?” he said.

Lebanon’s debt is now equal to 170 percent its GDP (gross domestic product), which the president says is more than the country can currently “bear.”

Source: Russia Today, March 7, 2020