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IMF's upcoming report on Lebanon set to deliver grim assessment of economic crisis
Lebanon Economy
21-03-2023 | 09:39
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IMF's upcoming report on Lebanon set to deliver grim assessment of economic crisis
Lebanon's financial sector has suffered losses exceeding $70 billion today, compared to $30 billion during the first crisis in 2019. More than 75 percent of total deposits have become difficult to retrieve, a significant decline from the 75 percent that could have been retrieved in dollars during the early days of the crisis.
The longer the government delays implementing reforms, the more difficult it becomes to recover the money, especially as the exchange rate continues to plummet, inflation surges, and the cost of living skyrockets.
This alarming scenario was warned by a delegation from the International Monetary Fund (IMF), which recently visited Lebanon to discuss economic and financial issues with government officials, experts, and representatives of the productive force and civil society.
The delegation was part of the Fourth Article Mission, which involves discussions between the IMF and member countries to gather economic and financial information and assess their current situation.
One year after signing the preliminary agreement with the IMF, the delegation expressed concern over the obstacles and resistance some groups have posed against the program, which would help put the country back on track and restore the world's confidence in it.
According to insiders, the delegation acknowledged that the major problem in Lebanon is not only technical but also political. The authorities lack political will, which is why they called on the people to exert pressure on the government and parliament.
The IMF's new report on Lebanon is expected to be released next Thursday, and sources anticipate it will be harshly critical of the current situation.
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