Lebanon’s current economic situation is being viewed as the worst financial crisis since the civil war, which lasted from 1975 to 1990. The Lebanese currency is currently at its lowest level since October 2019.
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| A pastry seller walks past a closed jewelry store in Beirut, Lebanon, on December 14, 2021. There was once a shopping spree in Beirut where there were traffic jams all day at Christmas. (Photo: AFP) |
The Lebanese government has confirmed the ongoing financial crisis in the country, saying the loss could be between 68 billion and 69 billion.
On Tuesday, Lebanese Deputy Prime Minister Saadi al-Shami confirmed the figures to Reuters, saying the figures were “accurate” but that some of them were “approximate”. Can He decline to give further details.
The agreement on the fiscal deficit figures is being seen as a significant step forward by the Lebanese government, as it would allow Beirut to negotiate on the International Monetary Fund’s (IMF) support program.
Negotiations for an IMF program stalled last year due to differences between Lebanon’s central bank, commercial banks, and the government over the size of the losses. Lebanon’s current economic situation is being viewed as the worst financial crisis since the civil war, which lasted from 1975 to 1990.
Lebanese Prime Minister Najib has said he wants to sign a memorandum of understanding with the IMF by the end of the year. Lebanon’s currency continues to fall during this financial crisis. According to AFP, Lebanon’s national currency plunged 20 times on Monday, adding to the country’s inflation and frustration.
The Lebanese pound is trading at 27,000 against the dollar on the black market. The value of the Lebanese currency is touching its lowest level since October 2019.
Lebanon’s economic crisis has been described as the world’s worst in 150 years. Inflation and commodity prices are skyrocketing in Lebanon, which imports more than 80 percent of its basic necessities.
Shortages of basic necessities, including fuel and medicine, and restrictions on withdrawals and transfers from banks have added to the frustration of the country’s middle class and ordinary Lebanese.
Poverty has risen sharply in the country, while the political class, which has been accused of years of corruption and mismanagement, has failed to offer a solution to the crisis.
Negotiations with the International Monetary Fund for a plan to revive the economy have been further complicated by political differences and accusations. The United States has also expressed frustration over the crackdown on press freedom in Lebanon and the use of military tribunals to prosecute civilians.
According to Al Arabiya News, the United States has strongly criticized a Beirut military court for sentencing a local journalist to 13 months in prison for “insulting the army” ahead of next year’s parliamentary and presidential elections.
U.S. officials have condemned the use of military tribunals for civilians, saying “governments must protect the right of the people to express themselves, even if they disagree.”
