[Sky News] Lebanon's prime minister has said his country is unable to pay its foreign currency loans and is set to default on debt for the first time ever.Hassan Diab made the announcement in a speech to the Middle East nation which is currently engulfed in a major financial crisis.
The value of its local currency has fallen by about 40% since October and mass protests have taken place for months against the government.
and Hezbollah's influence
He said he wanted to restructure the country's debt through negotiations with its bondholders.
Lebanon has a $1.2bn Eurobond due on 9 March, but Mr Diab said that payment will now be suspended.
The crisis, where savers have been denied full access to their bank account money, is seen as the biggest risk to Lebanon's stability since the end of the 1975-90 civil war.
The move to not pay maturing Eurobonds and to launch negotiations with creditors was taken unanimously at a cabinet meeting, it is reported.