| 24 May 2024, Friday |

International advice to officials: Stop wasting time!

Officials in Lebanon should not waste any more time developing a recovery strategy, according to international recommendations. They should discussions with the International Monetary Fund since the country is on the verge of entering a hazardous period of inflation and stagnation.

Even though Cabinet sessions have been suspended until further notice, the government continues to meet, make plans, and make promises to correct wages, support public drivers, release the financing card, implement a public transportation plan, and address other pressing issues, implying that the government is acting as a caretaker government today. Who will validate these promises, and how will the government pay for them? It should be noted that financial assistance from the International Monetary Fund will not be acquired before the legislative elections and will not exceed two billion dollars in the first stage, assuming that negotiations with the Fund are successful and a rescue program is agreed upon.

In this context, a former International Monetary Fund official told Sawt Beirut International that any solutions other than the reform program with the International Monetary Fund will not work, and urging officials not to wreak havoc on the economy. Because the fund’s experts are certain of the financial statistics’ veracity and the unfortunate scenario. There are some facts that simply cannot be refuted. They can’t agree to any plan that ignores the banking system’s massive losses. As a result, accounting methods employed to disguise losses in the past will not help a speedy rescue campaign. Furthermore, statements that the recovery plan will have no negative impact on depositors’ money are untrue, as the haircut on deposits is an unavoidable fact.
If things do not improve fast, the country risks entering a period of inflation and severe economic stagnation, according to the foreign official, as inflation and unemployment rates are rising in contradiction to the absence of economic growth.

  • Sawt Beirut International