Factsheets Back
31 . 05 . 2019
Market Overview


In May, Lebanese Government Eurobonds’ prices dropped by a significant USD 3 to 4 from the medium to long end of the curve. This was caused by tensions around the austerity budget and accompanied by minor protest form the central bank employees on budget cuts. Interest payment tax has also been approved to be raised from 7 to 10% for 3 years. Fitch and S&P estimates Lebanon’s fiscal deficit around 9 and 10 %. CDS levels for 5 and 10 years increased by around 80 and 50 bps to 870 and 830 ask-spread levels respectively. In the GCC, 5 year CDS levels had no major changes. Moodys’ affirmed Kuwait’s rating and stable outlook stating very high fiscal strength preserved even with oil price volatility. Bahrain received around $4.5 bln in aid from allies and expect YoY budget deficit to fall to 4.7% of GDP.