Lebanon Entering `Financial Crisis’ Prompts Minister’s Dire Call

 Lebanon protests: Yellow Vest protests spread as Lebanese citizens demand better living standards (Image: REUTERS)

Lebanon protests: Yellow Vest protests spread as Lebanese citizens demand the formation of a government and better living standards (Image: REUTERS)

Lebanon’s plight is turning into a crisis that could ultimately threaten the Middle Eastern country’s economic foundations, according to its finance minister.

“The crisis today has started to transform into a financial crisis from an economic crisis,” Ali Hassan Khalil was cited as saying by Lebanon’s state-run National News Agency. “We hope that it doesn’t turn into a monetary crisis that will lead to the Lebanese losing trust in their country’s future and their institutions.”

A political stalemate that’s delayed formation of a government seven months after elections is undermining plans for reforms that would unlock $11 billion in aid for Lebanon. The impasse in one of the world’s most indebted countries comes as the central bank’s ability to paper over the crisis has been constrained by years of anemic economic growth, slowing foreign inflows and a surge in borrowing costs.

Khalil’s political faction is allied with Hezbollah, an Iranian-backed group that is at the heart of the political crisis delaying the formation of Lebanon’s government by refusing to back down over its demands to have a meaningful representation in the cabinet.

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  • Arzna

    I guess Hezbollah doesn’t give a damn about Lebanon’ economy or its banks . Iran will continue to fund it regardless what happens to Lebanon’s economy and will continue to send it cash in boxes bypassing all the banks in Lebanon. This is why Hezbollah is in no hurry to see a Lebanese government. This is a huge mistake by Hezbollah , since it needs the backs of its members and communities to be protected by the rest of the Lebanese people in case of any future war . During 2006 war with Israel over 1 million Shiites were displaced and the Lebanese people welcomed them to their homes . Since another war with Israel is imminent , Hezbollah should rethink its strategy at least for the sake of its communities

    • Y K

      “This is a huge mistake by Hezbollah , since it needs the backs of
      its members and communities to be protected by the rest of the
      Lebanese people in case of any future war”

      But it has the backs of its community members! Literally, by holding a gun to their back. 🙂

  • Hind Abyad

    Here’s something that the mainstream media has left out when talking
    about Trump’s plan to withdraw troops from Syria: Congress never
    authorized sending troops to Syria.

    In fact, the UN also never approved. Our troops in Syria are in
    violation of domestic and international law.

    • Y K

      Dumbyad gives “regular” d^mb people a bad name. 🙂

      • Hind Abyad

        comming from a puding brain bad name