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Lebanon's new president faces economic crisis, reform challenges
News Bulletin Reports
11-01-2025 | 13:59
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Lebanon's new president faces economic crisis, reform challenges
Report by Lea Fayad, English adaptation by Karine Keuchkerian
With Joseph Aoun elected as Lebanon’s new president, the country’s greatest challenge lies in overcoming its economic crisis and rebuilding trust in its institutions.
Most importantly, Lebanon must implement critical reforms. So, what are the most important ones?
Reforming the financial system is the first priority. This includes addressing the banking sector crisis, finding a solution for depositors, and ensuring effective oversight of monetary policies.
Without the proper functioning of the banking sector, including the return of bank loans, the economy cannot move forward. No international body or foreign investor will put a single dollar into the country.
Among the financial reforms, negotiations with entities holding Lebanon’s Eurobond debt—unpaid since 2020—are also crucial to restoring trust in the country.
Reforming the public sector is the next key step. Widespread corruption in public institutions is one of the primary reasons for the collapse.
Enhancing transparency, reducing public spending, and merging institutions are no longer optional if Lebanon is serious about bringing money into the state treasury and providing basic services to citizens.
An economic recovery plan must also be implemented. Lebanon needs reforms that open the door for investment, especially in vital sectors like electricity, telecommunications, and transportation.
As the business environment improves, it will become easier to attract companies and support local productive sectors. This could bring in foreign currency and create job opportunities for Lebanese youth.
The success of these reforms requires political will and serious effort, a clear vision, and a unified government capable of implementing them.
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