Common Contracts
1 similar Debt Replacement Agreement contracts
FX/LL DEBT REPLACEMENT AGREEMENT BETWEEN MOF AND BDLDebt Replacement Agreement • May 30th, 2018
On 17 May 2018, the Lebanese Ministry of Finance (MoF) concluded a debt replacement agreement with the Central Bank of Lebanon (BDL), whereby MoF issued to BDL a nominal amount of US$ 5.5 billion in dollar denominated Eurobonds with a market value of $5.4 billion while BDL redeemed to MoF the equivalent in Lebanese Lira (LL) Treasury bonds from its existing portfolio. Following the transaction, the stock of outstanding government debt was unchanged, while the share of foreign currency debt to total debt increased from 38 percent to 44 percent. The transaction provides BDL with dollar denominated assets that will facilitate its monetary policy operations; and as part of the agreement, BDL will cover the foreign currency principal and debt service needs of MoF for the remainder of the year.
