Western reports warn of economic collapse. Lebanon reassures!

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Western reports warn of economic collapse. Lebanon reassures!Last updated: Sunday 22 Dhu al-Hijjah 1439 – September 2, 2018
Date of publication: Sunday 22 Dhu al-Hijjah 1439 – September 2, 2018 KSA 15:25 – GMT 12:25

source: net

Lebanese MPs and experts have eased the scale of the country's economic crisis after Western press reports warned of the collapse of the Lebanese economy and a major risk of lira in the event of further delays in forming the government.

The Chairman of the Committee on Finance and Budget MP Ibrahim Kanaan assured that there is no danger to the financial situation and believes that "there is some pressure on us to use them politically".

We are the most stable in Lebanon, in relation to the economies of the region, after having had a vision of reform and balance and after the development of the railways, "he said," we are stable and the reforms of the conferences expected – Financial and reform on the railways.

Lebanese financial expert, Walid Abu Sulaiman, eased the weight of Western reports, pointing to the gravity of the economic situation, and noted that "it revealed nothing surprising or new to the situation of the Lebanese economy, because these facts are known among the Lebanese and followers in particular, a delay, "according to the newspaper" Middle East. "

"It is noteworthy that the rating agency S & P has kept the outlook for the Lebanese situation stable and has not lowered the rating, indicating that the situation is stable, reassuringly that there is no fear of a deterioration of the national currency. of Lebanon always, because the Central Bank has sufficient reserve of foreign currency to defend the lira, in case of unimaginable developments, and prevents deterioration.

"The banking sector in Lebanon is solid and bank deposits are growing to an acceptable level of more than $ 180 billion," said Abu Sulaiman, adding that deposits are more than 3 times as big as GDP. , Ibrahim Kanaan, that the World Bank allocates about $ 4 billion to pump it into the Lebanese economy.

The Economist warned in a report that monetary policy in Lebanon is unsustainable and that every collapse of the value of the lira exchange rate would be painful and that there would be nothing more to deal with.

"The slowdown in government formation would have a negative impact on investment and, as a consequence, economic growth," said Marwan Barakat, head of research at Audi. Barakat spoke of the deterioration of 7 economic indicators, of the 11, in the first seven months of this year, including the stagnation in the real estate sector, where the building permits fell by 20.1 percent.

The value of current checks, which indicate consumption and investment, also fell by 13 percent between January and July, according to the central bank.

Moreover, the fear of a weakening of the Lebanese pound against the dollar is increasing, prompting banks to raise interest rates on the lira, which reached 15 percent.

The public debt in Lebanon is $ 82.5 billion, equivalent to 150 percent of GDP. Lebanon is in third place on the list of the world's most indebted countries.

The World Bank, which provided more than $ 4 billion at the Cedar conference, warned earlier about the & # 39; accuracy & # 39; of the Lebanese economy, especially with & # 39; ongoing & # 39; loans in the government or parliament, pending actual investment.

According to the economist, the real estate sector is "the most worrying", as the number of building permits fell by 9 percent in the first half of 2018 and property sales in the first quarter of the year decreased by 17 percent compared to the same period rates last year, developers to "fear the collapse of the second-largest, especially after the central bank suddenly subsidized housing loans stopped."

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Source: Arab Net

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