The Limited Times

Now you can see non-English news...

Four years after debt default, Lebanon still in impasse

2024-03-08T16:38:13.767Z

Highlights: Four years after debt default, Lebanon still in impasse. The country is sinking into crisis, further amplified by the war with Israel. The problem lies in the fact that the restructuring of public debt must be accompanied by that of the domestic financial sector. This other aspect, the banking crisis, involves a distribution of losses of several tens of billions of dollars that the leaders do not want to assume, preferring to impose on the Lebanese in general and on depositors in particular. This results in the progressive disintegration of institutional structures.


ANALYSIS - The country is sinking into crisis, further amplified by the war with Israel. The reason is the inaction of the authorities who have not initiated the necessary banking restructuring.


Four years after defaulting on its public debt, Lebanon still has no access to international markets.

The problem lies in the fact that the restructuring of public debt must be accompanied by that of the domestic financial sector.

However, this other aspect, the banking crisis, involves a distribution of losses of several tens of billions of dollars that the leaders do not want to assume, preferring to impose on the Lebanese in general and on depositors in particular a very brutal adjustment

” , explains Jean-Michel Saliba, director of the Middle East and North Africa economic research department at Bank of America.

He refers to the 40% fall in GDP which makes the Lebanese crisis one of the most serious in modern history according to the World Bank.

A crisis which has continued to grow since its outbreak, due to the “

deliberate inaction

” of the authorities.

This results in the progressive disintegration of institutional structures…

This article is reserved for subscribers.

You have 84% left to discover.

Flash sale

€4.49/month for 12 months

I ENJOY IT

Already subscribed?

Log in

Source: lefigaro

All news articles on 2024-03-08

You may like

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.