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Lebanon is to miss a $1.2 Bn Eurobond payment and seek talks with creditors to restructure its entire $90 Bn debt pile. This is the first default in the country’s history. Foreign currency reserves have reached a critical and dangerous level. The ratio of debt to the gross domestic product had reached 170%. Lebanese dollar bonds have since lost half of their value. Bank limits on access to dollars have led to a parallel currency market that’s pricing a devaluation of more than 40% for the Lebanese pound, which has been pegged to the dollar at the same rate since 1997. This is a long-expected and not related to the economic turmoil caused by the coronavirus outbreak. But it comes at a time when the global financial system is on edge.