Najib Mikati, Prime Minister in the Lebanese caretaker government, and Parliament Speaker Nabih Berri, met before a legislative session that was scheduled, but did not take place due to the lack of a legal quorum in Beirut on Thursday. Photography: Muhammad Azaqir. reuters_tickers
This content was published on August 17, 2023 – 22:09-Jul, August 17, 2023 – 22:09
BEIRUT (Reuters) – Lebanon’s caretaker Prime Minister Najib Mikati said on Thursday that Lebanon’s failure to pass a series of important economic laws to lift the state from its stumbling blocks threatens the country’s future economic stability.
The financial collapse that began in 2019 caused the currency to lose more than 90 percent of its value, paralyzed the financial system, and deprived depositors of access to their savings. The government estimates financial sector losses at more than $70 billion.
Mikati said that parliament should hold a special session to pass a package of laws related to the recovery plan, restructuring banks and the financial gap at once.
Mikati said that four years have passed without any single bill related to financial reform being approved.
“All of them need an immediate solution, and if the House of Representatives does not convene to approve them within one basket, then there will be no economic stability in the country,” he added in the House of Representatives, after failing to hold a parliamentary session due to lack of a quorum.
Mikati said that failure to take any action that would help Lebanon get out of the current crisis could plunge the country into “a series of crises.”
The crisis erupted after decades of profligate spending and the corruption of the ruling elite, some of whose members were led by banks that lent heavily to the state.
Mikati said, “We have reached a very difficult stage, and our economy is turning into a cash economy, which will expose Lebanon to many risks in the event that the bank restructuring law is not approved. It is necessary to restore banking life in a normal way so that we can get out of this crisis, otherwise we will enter into a crisis.” A series of crises, and the situation will be more difficult.”
The International Monetary Fund recently said that if the status quo in Lebanon continues, public debt could reach 547 percent of gross domestic product by 2027.
Lebanon signed a staff-level agreement with the International Monetary Fund last year but did not meet the requirements for a full programme, which is seen as crucial to recovering from one of the world’s worst financial crises.
Mikati added that the heavily indebted country is committed to the agreement with the International Monetary Fund and the necessary fiscal reforms to help obtain the donor support necessary for recovery.
(Covering by Suleiman Al-Khalidi and Laila Bassam – Prepared by Mahmoud Reda Murad and Muhammad Harfush for the Arabic Bulletin – Edited by Ayman Saad Muslim)
2023-08-17 20:09:12
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