Tuesday, April 23, 2024

The Lebanese government is approving a plan to deal with the worst financial collapse in the country’s history


Beirut – Reuters

On Thursday, the Lebanese cabinet approved its policy plan to deal with the worst financial collapse in history.

As Lebanon plunges into the abyss of economic collapse, three-quarters of its population is on the brink of poverty, and the local currency has lost 90 percent of its value over the past two years.

The government of new Prime Minister Najib Mikati met at the Presidential Palace on Friday after a year-long political stalemate and agreed to a motion to be tabled in parliament for approval.

The draft document includes the resumption of talks with the International Monetary Fund and the restructuring of the banking sector. An official source said the government had agreed to the plan without any major changes to the draft.

The Lebanese pound has risen significantly against the dollar in the past week since the government was formed, after reaching $ 23,000 last month, selling at about $ 13,800 against the US dollar on Thursday.

The draft plan said the Mikadi government would revamp the previous financial recovery plan, which set the deficit at about $ 90 billion, which was approved by the International Monetary Fund. The World Bank has described Lebanon’s financial crisis as the worst recession in modern history.

The size of the losses was a major sticking point that led to the collapse of the plan last year, the size of which was opposed by key politicians and bankers, which eventually led to the suspension of negotiations last summer.

Some believe that the rapid decline in living conditions over the past year and the shortage of basic commodities such as fuel and medicine, which have paralyzed almost every aspect of life, will motivate politicians to make decisions. Previously rejected.

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Rolf Colon
Rolf Colon
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