The Lebanese Prime Minister Mr. Hassan Diab announced on Saturday March 7 that the government would be suspending the payment of the March 9 maturing Eurobonds totaling $1.2 billion, while also adding that Lebanon’s debt overhang which exceeded $90 billion (some 170% of GDP) has become unsustainable. In details, Mr. Diab announced that Lebanon would be prioritizing the funding of basic imports over foreign currency debt payment (of which $4.6 billion are due in 2020) in the light of the dwindling foreign currency reserves. Mr. Diab attributed the current situation to the inefficiency of the Lebanese economy, the rampant corruption levels and the ongoing regional conflicts that choked the Lebanese economy. The PM reflected that the government will conduct negotiations with its creditors to restructure its debt, and that in parallel it will seek to reduce its expenditures by applying long-awaited measures including the reform of the electricity sector while pointing out that the recently adopted gasification plan would save $350 million annually. Mr. Diab added that the government will plan to shift the economy into a more productive one, which will focus more on the agricultural, industrial and knowledge economy sectors. Finally, Mr. Diab indicated that the government will seek to protect depositors, and notably small depositors which represent more than 90% of the number of bank accounts.