The Lebanese Eurobonds’ market witnessed this week extended price gains with prices reaching 18.75-19.25 cents to the dollar on Thursday. Trading activity and prices started the week on the lower side with prices ranging between 18.25 and 18.75 cents to the dollar, yet improved later on the back of a statement made by the Lebanese Minister of Finance who announced that the Government aims to negotiate a new program with the International Monetary Fund and address the ongoing economic crisis. Selling activity was more concentrated within local players. Attention will now shift to the upcoming parliamentary sessions that will be held on Tuesday and Wednesday February 25 and February 26 respectively where discussions will focus on the ministerial statement and giving a vote of confidence to the new government.

On the other hand, some recent international restructuring scenarios for Lebanon’s Eurobonds suggested a 70% haircut and a ten-year maturity extension, reflecting a cautious optimism following recent political developments compared to previous reports issued in early February that estimated a recovery value of 25 cents to the Dollar. These indicative recovery values paved the way for a more positive momentum for prices.