Don’t fall for Hezbollah’s coronavirus con
Lebanon announced this month it was defaulting on all of its outstanding debt payments for the year, including $1.2 billion in eurobonds due in March. There are another $3.4 billion worth of eurobonds coming due after that. Those, too, will go unpaid.
It’s a burgeoning crisis that deserves attention — but it does not warrant the blind bailout that Beirut is trying to secure.
The defaults come as no surprise. The foreign currency reserves of Lebanon’s central bank are running on fumes. Beirut must now negotiate with bondholders to restructure its debt. Desperate for cash, the government seeks billions of dollars in assistance and handouts from international donors, the International Monetary Fund, and the World Bank.
The suffering of the Lebanese people will be featured in the headlines in the coming weeks, particularly as COVID-19 continues to claim victims across the Middle East. The people of Lebanon should get the medical support they need and request. But the Lebanese government should not be granted a lifeline. Nor should any future government, without an overhaul of the existing system. The Lebanese system is built on graft. Its political class is corrupt beyond redemption. And at the center of it all is the Iran-backed terrorist group Hezbollah.
Read More: Washington Examiner