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Economists Call for Restructuring Lebanon's Public Debt

Dale Gavlak

   AMMAN, JORDAN - Lebanon is engulfed in a crippling financial crisis as
   the government seeks support from an International Monetary Fund
   technical delegation visiting the country. The IMF is trying to help
   draw up a comprehensive economic, monetary and financial rescue plan
   for the tiny Mediterranean country.So far, Lebanon has not asked for
   financial assistance from the IMF, but meetings are still continuing.
   Protests since October have seen the ruling elite blamed for decades of
   financial mismanagement.

   Lebanese economist Kamal Hamdan directs the Consultation & Research
   Institute in Beirut. He said the government has not yet provided a
   detailed action plan or roadmap out of Lebanon's financial turmoil, but
   he expects one to be announced in the next 10 days. He sees the IMF
   visit as perhaps helping or accelerating the emergence of such a plan.

   He said Lebanon's gross domestic product for 2019 was negative and the
   same can be expected this year. The U.S. dollar has also increased by
   60 percent against the Lebanese lira currency, while the consumer price
   index hovers around 10 percent. He warns that with these indicators,
   the short-term outlook is not good.

   "We are in an economic catastrophe.Higher inflation, higher deprivation
   of the purchasing power of many Lebanese -- maybe two-thirds of
   Lebanese have their income in Lebanese pounds. The whole pension system
   is based on Lebanese pounds.I don't know how to say '¦ we have to
   expect shocks with respect to social issues in the coming weeks and
   months," said Hamdan.

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