Lebanon Fears Losing Basic Amenities In Eminent Cash Crunch
The Lebanese economy is in dire straits. This was more evident as panicked crowds of civilians thronged outside banks to withdraw the maximum amount of withdrawing allowed in a day. It has been capped to merely $100. Corruption is hitting the roof as the dollar exchange rate on the black market is reported to be more than LBP2450, while the official rate is around LBP 1517.
With few sources of foreign exchange, the country has always depended on its diaspora to remit cash to the banking system, which is then recycled to finance imports and the state deficit.
With the country reeling under severe money shortage, it is finding itself difficult to pay for services it is using. For example, there seems to be an obvious scare amongst Lebanese people that their access to the Internet might become non -existent. The same seems to be the fate of the gas supply.
People are resorting to rationing stocks in all manners. Some are drawing money from the banks, only to put them into safety deposit lockers, who rentals have gone up to $175. Disgruntled civilians took to streets after a three-week lull and even threw politicians out of their cozy spots. These include the minister of defense in the caretaker government, Elias Bou Saab, the minister of public works, Youssef Fenianos, and Future Movement MP Sami Fatfat.
Most were driven out when they were seen sitting in a café of dining-out.
Lebanon has been facing a political stalemate since November 2019, when unhappy civilians went out on mass protest since October, forcing the then prime minister Saad Hariri to resign and eventually showing a complete breakdown of trust in an economy that was already in crisis. The protesters’ anger was focused on the perceived corruption of Lebanese sectarian politicians who have dominated the country since the 1975-90civilwar.
Lebanon borrows and imports heavily. Its economic growth was seen stuck between 1-2percent for several years. In 2019, it fell further zero. Yet, the government has continued to borrow. While GDP stands at $55 billion, the national debt is around 150% of GDP, or $85 billion.
With few sources of foreign exchange, the country has always depended on its diaspora to remit cash to the banking system, which is then recycled to finance imports and the state deficit.
With the country reeling under severe money shortage, it is finding itself difficult to pay for services it is using. For example, there seems to be an obvious scare amongst Lebanese people that their access to the Internet might become non -existent. The same seems to be the fate of the gas supply.
People are resorting to rationing stocks in all manners. Some are drawing money from the banks, only to put them into safety deposit lockers, who rentals have gone up to $175. Disgruntled civilians took to streets after a three-week lull and even threw politicians out of their cozy spots. These include the minister of defense in the caretaker government, Elias Bou Saab, the minister of public works, Youssef Fenianos, and Future Movement MP Sami Fatfat.
Most were driven out when they were seen sitting in a café of dining-out.
Lebanon has been facing a political stalemate since November 2019, when unhappy civilians went out on mass protest since October, forcing the then prime minister Saad Hariri to resign and eventually showing a complete breakdown of trust in an economy that was already in crisis. The protesters’ anger was focused on the perceived corruption of Lebanese sectarian politicians who have dominated the country since the 1975-90civilwar.
Lebanon borrows and imports heavily. Its economic growth was seen stuck between 1-2percent for several years. In 2019, it fell further zero. Yet, the government has continued to borrow. While GDP stands at $55 billion, the national debt is around 150% of GDP, or $85 billion.
Comments
Post a Comment