Deputy Prime Minister states that Lebanon is bankrupt
Lebanon–According to Deputy Prime Minister Saadeh al-Shami, Lebanon’s state and central bank are both bankrupt. “The state, like the Banque du Liban, has gone bankrupt, and the loss has occurred,” al-Shami told the local Al-Jadeed station. “We will attempt to decrease losses for the people.”
According to him, the losses would be shared among the government, the Banque du Liban, banks, and depositors. “There is no disagreement on how losses should be distributed,” he added. Lebanon’s economic collapse, which began in October of this year, marked the end of the country’s post-war period. Militia commanders rose to prominence after the conflict and have maintained their grip on power ever since. They managed an economy that prospered at times but was really a Ponzi scheme filled with corruption and incompetence at all times.
The strategy ultimately came crashing down in one of the world’s greatest economic and financial crises since the mid-1800s, according to the World Bank. According to Al-Shami, the country’s circumstances “cannot be overlooked,” and hence bank withdrawals cannot be made available to everyone. He said, “I wish we were in a regular scenario.” The Lebanese currency has lost 90% of its value, limiting people’s access to essential items like as food, water, health care, and education, while fuel shortages have resulted in severe power outages.
In a country where practically everything is imported, incomes lost purchasing power, funds in banks became unavailable, and prices surged. According to the United Nations, up to 82 percent of the population presently lives in poverty. The unemployment rate is expected to be over 40%. The coronavirus epidemic, as well as a large explosion at Beirut’s port in 2020, which killed 216 people, injured hundreds, and damaged portions of the capital, exacerbated the issue.
The political system has not yet collapsed, despite the fact that the economic system has. The same, entrenched leadership has done almost little to solve the situation. They have made little headway in discussions with the International Monetary Fund because they refuse to accept basic changes (IMF).