The Lebanese government will meet on Saturday to take a decision on its Eurobonds, the country's information minister said on Thursday after a cabinet meeting.
Lebanon's Parliament Speaker Nabih Berri said on Wednesday a majority in the country was against paying the maturing debt as it wrestles with a financial crisis.
"The cabinet will hold a session this coming Saturday to study the financial situation and the matter of the Eurobonds to take the appropriate decision on it," Manal Abdel Samad said.
Addressing representatives of the country’s parliamentary blocs on Wednesday, Berri affirmed: “The majority of the Lebanese people, as well as the parliament, absolutely reject the payment, and the government’s decision requires the support of all, even if it leads to default.
“The banks, which caused a loss of 75% of the debt, bear the responsibility towards foreign buyers. If they want to restructure without restriction or condition and without paying any amount or a percentage of the amount or interest, then be it. We are in favor of any measure taken by the government, other than paying. Once again we confirm that deposits are sacred."
Sources participating in the meeting pointed out that Berri’s statement “stems from the positions of most parliamentary blocs, regardless of their political orientations.”
The sources added that the majority of deputies were against the payment of Eurobonds and underlined the importance of “making the least harmful decision that would protect the deposits of citizens, especially small depositors.”
Leading politician Walid Joumblatt told Reuters on Thursday that Lebanon must cooperate with the IMF to secure badly needed international aid, calling for a "joint program" with the Fund.
Joumblatt is the most influential figure yet in Lebanon to call for an IMF program to deal with the long-brewing crisis that came to a head last year as capital inflows slowed down and protests erupted against the ruling elite.
Joumblatt said an IMF-backed program was the only way for Lebanon to secure financial support.
"I just don't see any other way. Neither the Arabs nor the Americans nor even the French are ready to help us without the coordination of the IMF. This is my impression," he said.
The Lebanese government has requested IMF technical but not financial support. Joumblatt's party is not represented in the current government, which took office in January with backing from Hezbollah and its allies.
Hezbollah, a heavily armed group backed by Iran and designated a terrorist organization by the United States, is opposed to an IMF program.
Joumblatt said "a joint program" must be found with the IMF. "They have ideas, we have ideas," he said.
"This needs also close cooperation and understanding with Hezbollah, that there is no danger to the sovereignty of Lebanon if the IMF deals with problems like power, electricity and other issues," he said.
