Qatar has announced that it will invest $500 million in Lebanese government bonds to support the country's struggling economy.
Qatari Foreign Minister Sheikh Mohammed bin Abdulrahman Al Thani made the announcement in comments to Qatar's state news agency.
"We wish stability and prosperity for the Lebanese republic and the Lebanese people, and that the Lebanese economy will recover. The region needs a strong and prosperous Lebanon," Al Thani said in a statement.
Lebanon's dollar-denominated bonds rose across the curve on the news, with the 2025 issue up almost 1 cent and the paper due in 2037 adding 1.2 cents in early trade, according to Tradeweb data.
Monday's announcement came a day after Qatar's ruler, Sheikh Tamim bin Hamad Al Thani, made a short rare visit to Lebanon where he met President Michel Aoun and took part in an Arab economic summit.
Lebanon's economy has been struggling from massive debt, little growth and high unemployment.
Earlier this month, Lebanon's Finance Minister Ali Hassan Khalil was quoted by a local newspaper as saying that the country might restructure its debt, leading it to a sell-off of Lebanese bonds.
He later clarified that Lebanon is committed to paying back all maturing debt.
