The data released by the Ministry of Finance (MoF) recently indicated that Lebanon’s gross public debt hit $101.95B in October 2022, thereby recording an annual increase of 2.1% YOY.
The rise is mainly attributed to the annual increase in foreign currency debt (namely in USD) by 7.02%, to stand at $40.82B by October 2022. In turn, total foreign debt grasped a stake of 40.04% of the total public debt by October 2022. It is worth mentioning that $13.48B represents the unpaid Eurobonds, their coupons and accrued interests, due to the default on government Eurobonds in March 2020. Meanwhile, debt in local currency (denominated in LBP) fell slightly by 0.86% to stand at $61.13B in October 2022, and constituted 59.96% of the total public debt.
Looking at net domestic debt, which excludes public sector deposits with the central bank and commercial banks, it decreased remarkably by 10.9% YOY to $44.17B in October 2022. As a result, the public deposits are estimated at $16.96B, amassed to cover increasing salaries and social assistance payments to public employees.
Domestic and Foreign Debt by October 2022 ($B)
Source: MoF, BLOMINVEST Bank