| 20 July 2024, Saturday |

Lebanese economy collapsing more than ever as banks go on strikes, currency depreciates

The greatest impediment to obtaining agreement on a thorough reform plan to save the country, more than three years after the start of the worst economic and financial crisis in Lebanon’s history, is disagreement among the key players on how to disperse the financial losses. The unprecedented political void is expected to make it even more difficult to come to a consensus on how to resolve the crisis and approve required reforms, worsening the situation for the Lebanese people.

Considering that Lebanon is undeniably moving toward total dollarization, would the current crisis only serve to further this trend even once the country has recovered?

One of the most prominent demands of the International Monetary Fund in aid to Lebanon worth three billion dollars over four years is the restructuring of the banking sector, which includes more than sixty banks and is called for by the World Bank. This means addressing the situation of this sector by reorganizing the banks financially and administratively.

Despite the fact that the crisis has been over for three years, banks are nonetheless unable to take this action today. Is there a strategy to attack the financial industry and bring the nation to a standstill?

  • Sawt Beirut International