Qatar to buy $500 million in Lebanese Eurobonds

Qatar will purchase Lebanese government bonds denominated in the U.S. dollar worth $500 million, said Qatari Deputy Prime Minister and Minister of Foreign Affairs Mohammed bin Abdulrahman Al Thani.

“We are committed to support the Lebanese economy and people in light of great challenges,” Al Thani said.

Earlier this month, the country’s dollar-denominated bonds (Eurobonds) witnessed a heavy sell-off and their prices plunged following a controversial statement by Caretaker Minister of Finance Ali Hassan Khalil about a possible debt restructuring. Later on Khalil retracted his statement and top officials reassured bondholders that debt restructuring is out of the question. Following these reassurances Eurobond prices improved but did not rebound to their earlier levels.

On Monday, the Media office of the Presidency of the Republic denied press reports claiming that the Qatari government plans to deposit $1 billion with the Central Bank (BDL).