Lebanon’s Eurobond that matures in March has rallied over the past week amid rising hopes that the authorities will make the payment, but this will simply delay the inevitable debt restructuring. Elsewhere, Tunisia failed in its latest attempt to form a government this week, moving it closer to fresh elections and extending the period of policy paralysis that has left the country’s large twin deficits unchecked. And Jordan’s staff-level agreement with the IMF for a new $1.3bn deal will help to restore macro stability, but further austerity will keep economic growth subdued in the coming years.
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