UPDATE 1-Lebanon to ask for 7-day grace period for March 9 bond-source

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BEIRUT, Feb 27 (Reuters) – Lebanon intends to ask for a seven-day grace period for a $1.2 billion Eurobond that matures on March 9, as it is entitled to, in order to give financial advisers more time to draft a restructuring plan, a government source said on Thursday.

Lebanon would seek the seven-day grace period ahead of the March 9 date, the source said.

The Lebanese government this week appointed U.S. investment bank Lazard and law firm Cleary Gottlieb Steen & Hamilton LLP as its financial and legal advisers on the widely expected debt restructuring.

Lebanon’s long-brewing economic crisis came to a head last year as capital inflows slowed and protests erupted against the ruling elite over corruption and bad governance – root causes of the crisis. (Reporting by Samia Nakhoul; Writing by Tom Perry; Editing by Jon Boyle and Alex Richardson)

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