Bloomberg/Beirut -- Some foreign holders of Lebanon’s Eurobonds are expressing support for a government debt restructuring as the clamour grows among local politicians to skip a payment due in weeks. At a private meeting days ago with government representatives, a number of foreign funds that own Lebanese sovereign bonds, including a $1.2bn note due March 9, argued that the crisis-ridden country would be better off restructuring rather than paying its debt, said a person familiar with the matter, declining to identify the investors. In a suggestion that the fallout can be contained, they said Lebanon’s bonds were already discounted on their balance sheets, according to the person, who asked not to be named because the information isn’t public. Most of Lebanon’s bonds maturing beyond this year trade at between 35 and 40 cents on the dollar. The March notes fell around 2 cents to 87 on Thursday, still above their low of 76 on January 29.

Central bank governor Riad Salameh has told officials including the new Prime Minister, Hassan Diab, that he is willing to pay the debt if instructed by the government, people familiar with the talks said. He’s already helped repay nearly $5bn of bonds in the past year. While Diab is in favour of meeting Lebanon’s debt obligations this year, according to a local media report, he hasn’t yet made a final decision. The decision will come down to a choice of who should bear the cost of easing one of the world’s biggest debt burdens, estimated at over 150% of gross domestic product last year, as hardships mount after months of protests. Lebanon is enduring its worst financial crisis in decades, with the central bank rationing dollars and nationwide unrest over what many fear could be an imminent collapse. Despite a spotless record of servicing international debt, consensus is fraying in Lebanon as almost $3.5bn in Eurobond principal and interest payments come due by June. Bankers say local lenders, which hold most of the country’s Eurobonds, favour a repayment to avoid blowing a hole in their balance sheets. The most recent payment of $1.5bn, made by the central bank in November, was criticised by some local politicians who said Lebanon should instead use what’s left of its reserves on buying much-needed imports. A group of lawmakers aligned with a majority in parliament is lobbying the government to seek technical assistance from international institutions before making a final decision. They’re trying to convince the premier and others that Lebanon risks a crisis and violence similar to Venezuela, which defaulted on its debts in 2017.

by npr.org -- DEBORAH AMOS -- LAMA AL-ARIAN -- Like many Lebanese, Jesuit priest Gabriel Khairallah has been on the front lines of anti-government protests for more than three months. "I mean, what am I doing on the front? I am against corruption and seeking social justice, and the same for the doctors," he says. He's done much more than protest on the streets — in recent weeks, he also opened a low-cost medical clinic in the annex of Beirut's St. Joseph Church.

In Khairallah's clinic, which is run mostly by volunteers, the cost of a visit is about $5 and is waived for those who can't afford it. More than 30 doctors serve on a rotating basis, providing specialized care in cardiology, pediatrics, gynecology and orthopedics. Khairallah also corralled pharmacies to donate certain medicines. "We are collecting from every person of goodwill," says Khairallah. "We are not expecting a miracle. We hope to create a place where people feel respected."

A perfect economic storm

The need for such a clinic arose as Lebanon's economic woes sparked spontaneous mass protests last October. A million people took to the streets. Initially, anger surged over a new tax on Internet voice-call services, and expanded to demand the ouster of the government. The protests, peaceful for months, grew more violent in December, as riot police used water cannons, tear gas and rubber bullets to stop thousands from demonstrating in front of the parliament building. Lebanon is one of the most indebted nations in the world. For decades, the central bank serviced debt by offering high interest rates to attract capital. "But it reached a point that people began to realize it's not sustainable and the government is just accumulating more debt and the banks are further away from solvency," says Paul Salem, president of the Middle East Institute in Washington, D.C. Over the past 18 months, with a decline in oil prices, remittances from Lebanese working in the Gulf also have shrunk. "It's causing a reverse sucking motion," Salem says, "with people not sending money and trying to pull their money out."

Democratic presidential candidates Sen. Elizabeth Warren, D-Mass., and Sen. Amy Klobuchar, D-Minn. greet each prior to the start of the Democratic presidential primary debate in  Manchester, N.H. Friday.

by AP -- In a perfect world, Susan Stepp, a 73-year-old retiree, would be voting vote for Massachusetts Sen. Elizabeth Warren in New Hampshire's Democratic presidential primary Tuesday, she says. But that won't be happening. “I am not sure a woman is the best candidate to go up against Trump,” Stepp said recently as she stood in the back of a conference room listening to tech entrepreneur Andrew Yang as part of her hunt for the best candidate to challenge the Republican incumbent. Stepp's concern has coursed through the Democratic primary for months, registering in polling, interviews and, now, the first votes cast. In Iowa's caucuses last Monday, many Democrats did not prioritize breaking the gender barrier to the Oval Office and they viewed being a woman as a hindrance rather than an advantage in the race.

Only about one-third of Iowa caucusgoers backed a female candidate. Topping the caucus field were two men, former South Bend, Indiana, mayor Pete Buttigieg and Vermont Sen. Bernie Sanders,. Women were only slightly more likely than men to back one of the three women in the race, according to AP VoteCast, a survey of more than 3,000 Iowa voters. Most Iowa Democrats said it was important for a woman to be president in their lifetimes. But many voters, including about half of all women, said a female nominee would have a harder time beating Donald Trump in November. “He will just use that against her, like he did Hillary," Stepp said, looking back to Trump's 2016 race against Hillary Clinton in 2016. "He doesn’t debate. He just insults. I don’t think he would have that same effect if he went up against a strong man.” Stepp said she plans to vote for Sanders. Those perceptions present an undeniable headwind for the women in the race, who have spent months making the case that a woman can win. As they seek success in New Hampshire, both Warren and Minnesota Sen. Amy Klobuchar must work to energize voters about the chance to make history and persuade them it is possible this year, in this race against this president. “In 2020, we can and should have a woman for president," Warren said at a CNN town hall this past week, days after taking third in Iowa. Klobuchar came in fifth. The Associated Press has not called a winner in the Iowa caucus because the race is too close to call.

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