The agreement on a new electoral law for Lebanon avoids a political crisis, but highlights the limitations of the country's sectarian-based political system, Fitch Ratings says.
In a statement was released by the rating agency, recent political developments can help sustain positive sentiment, but rising public debt, up 8.6% in March 2017, means that Lebanon remains vulnerable to a recurrence of political paralysis that dents confidence and deposit and remittance flows. Tougher US sanctions against Hezbollah could also directly or indirectly affect foreign flows into Lebanon and its banking sector, although these have not yet been formally proposed as a bill.
REUTERS
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