Lebanon central bank says higher global interest rates complicate Eurobond debt restructuring

BEIRUT, Sept 12 (Reuters) - Lebanon's central bank warned on Friday that elevated global interest rates would complicate the country's efforts to restructure its international bonds, which have surged in recent weeks amid hopes the country is making progress towards a debt overhaul.

The warning came in the bank's mid-year Macroeconomic Review, the first public overview it has shared in years. Deputy central bank governor Salim Chahine told reporters that its publication offered "an opportunity to bolster the market confidence that we lost and would now like to rebuild."

Lebanon's economy began unravelling in 2019 after years of corruption and profligate spending by the country's ruling elite, and tipped into a sovereign default on its $31 billion of outstanding international bonds in March 2020.

Lebanon's defaulted bonds have had a stellar rally with bonds rising from just over 10 cents at the start of the year to around 23 cents on Friday, when they eked out small gains on the day.

The Bank's review also cited growth in its liquid foreign currency reserves to reach $11.3 billion and in the value of its gold reserves to $30.28 billion, due to higher gold prices.