The Lebanese Gross Public Debt (GPD) amounted to $69.43B (LBP 104,338B) by March 2015, broadening by 6.56% year-on-year (y-o-y) and 4.29% year-to-date (y-t-d). Hence, Lebanon’s public debt reached 145.12% of Gross Domestic Product compared to 135.46% in March 2014.
Debt in domestic currency, representing 60.44% of total gross debt, grew by a yearly 8.23% to reach $41.96B, while foreign currency debt increased by 4.07% y-o-y to stand at $27.46B, over the same period. For the past years, investors have been more enticed to subscribe to domestic currency debt rather than the one denominated in foreign currencies due to the yields being more attractive on local debt securities In fact in 2008, the local debt to foreign debt was actually at parity.
The Net Public Debt, which excludes public sector deposits at commercial banks and the Central Bank (BdL), widened by 7.57% annually to $58.51B and registered a 2.10% y-t-d increase by March 2015.
Commercial banks remained the largest subscribers of Treasury bills and bonds with a share of 49.2%, followed by 34.1%% stake for BdL and 16.7% for the non-banking sector (largest contributor is NSSA).
Share of Local Debt from Gross Public Debt by March
Source: Association of Banks in Lebanon