Lebanon: Urgent Action Needed to Avert ‘Financial Crisis’

The Lebanese finance minister sounded the alarm of a looming financial crisis if decisive and concerted action is not taken to form a government.

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Lebanon: Citizens Protest Against Political Stalemate

“The crisis today has started to transform into a financial crisis from an economic crisis,” said Lebanon's Finance Minister Ali Hassan. He added, “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 has forestalled the formation of government 7 months after the May 8, 2018, general elections.

For the Minister, this delay means the government is unable to see to it that laws are implemented which will help “reduce expenditures and improve state income,” according to Prensa Latina.

Lebanese political parties are struggling to define how many seats each faction will get in the top cabinet posts, an issue on which they nearly reached an agreement last week, according to Reuters.

Lebanon holds one of the highest debt to GDP ratios.

At the beginning of the month, hundreds of Lebanese descended upon the country’s streets to protest against political stalemate which has obstructed the formation of a new government.

As a response, Lebanese Prime Minister-designate Saad al-Hariri said he hoped a new national unity government would be formed by the end of the year, but so far without success.