Lebanon's top leadership opposes repaying the country's sovereign debt, the presidency said on Saturday, indicating the the heavily indebted state is heading towards a default as it grapples with a major financial crisis.

A default on Lebanon's foreign currency debt will mark a new phase in the crisis that has hammered Lebanon's economy since October, slicing around 40% off the value of the local currency and leading banks to deny savers full access to deposits.

Lebanon has a $1.2 billion Eurobond due on March 9, part of a wider portfolio of some $31 billion in dollar bonds that sources told Reuters on Friday the government would seek to restructure in negotiations with its creditors.

Prime Minister Hassan Diab will address the Eurobond issue and Lebanon's wider economic crisis in a speech to the nation at 6:30 p.m. (1630 GMT).