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In Lebanon, default is ‘virtually certain’ after stark credit downgrades

In Lebanon, default is ‘virtually certain’ after stark credit downgrades

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  1. ‘Lebanon was hit with a double downgrade over the weekend by two of the world’s largest ratings agencies, dragging its sovereign credit rating further into junk territory.
    The lira, officially pegged to the dollar, has plummeted 40% on the black market as local banks ration dollars necessary for imports of food, medicine and other essential goods.’

  2. This is the best tl;dr I could make, [original](https://www.cnbc.com/2020/02/24/lebanon-crisis-debt-default-is-virtually-certain-after-credit-downgrades.html) reduced by 90%. (I’m a bot)
    *****
    > "You're in the middle of a banking crisis, a currency crisis, a debt crisis, and all of that has led to an economic crisis," Nafez Zouk, a Lebanon expert and emerging markets strategist at Oxford Economics, told CNBC via phone.

    > Lebanon's banks also have a staggering proportion of exposure to the country's sovereign debt: roughly 70% of Lebanese banks' assets are sovereign and central bank debt instruments.

    > Of Lebanon's $30 billion worth of international bonds, two-thirds are held by local banks and the central bank, while about one-third is held by foreign investors.

    *****
    [**Extended Summary**](http://np.reddit.com/r/autotldr/comments/f8td1v/in_lebanon_default_is_virtually_certain_after/) | [FAQ](http://np.reddit.com/r/autotldr/comments/31b9fm/faq_autotldr_bot/ “Version 2.02, ~469853 tl;drs so far.”) | [Feedback](http://np.reddit.com/message/compose?to=%23autotldr “PM’s and comments are monitored, constructive feedback is welcome.”) | *Top* *keywords*: **Lebanon**^#1 **debt**^#2 **bank**^#3 **country**^#4 **dollar**^#5

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