LONDON — Lebanon's caretaker finance minister has asked the central bank governor to hold off on a proposed swap of 2020 Eurobonds after ratings agencies warned it could constitute a selective default, a source familiar with the matter said on Wednesday. One of the most heavily indebted countries in the world, Lebanon has $2.5 billion in Eurobonds due this year including a $1.2 billion bond set to mature in March. But its dire finances and political crisis mean it is running out of options to avoid a default. There are a number of ways this could happen. As that would change the fundamental contract of the bonds, rating agencies appear to have warned the country it would constitute what is known as a "selective" or "restricted" default.

Source: International New York Times January 16, 2020 00:00 UTC