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Lebanon adopts economic recovery plan amid financial meltdown
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IANS | 21 May, 2022
The Lebanese government has adopted an economic recovery plan aimed at
saving the country from a three-year financial meltdown, according to a
statement by the council of ministers.
Several measures
in the plan are what the International Monetary Fund has required for
its bailout, such as restructuring the banking sector and reforming a
banking secrecy law, reports Xinhua news agency.
According to the
new plan, "a large part" of the Lebanese central bank's foreign
currency obligations to commercial banks will be cancelled and
non-viable banks should be dissolved by November.
The largest 14
commercial banks in Lebanon, representing 83 per cent of the country's
total assets, will be audited, and viable banks recapitalized with
"significant contributions" from bank shareholders and large depositors.
Prime Minister Najib Mikati said the plan will protect small depositors "to the maximum extent possible" in each viable bank.
A
similar plan endorsed by the government of then Prime Minister Gassan
Diab in April 2020 was rejected by Lebanon's Association of the Banks as
it would leave banks and depositors bearing a loss estimated by the
government at about $72 billion.
The incumbent government led by
Mikati will become a caretaker as of Saturday because a new Parliament
was elected on May 17 and a newly elected speaker, together with the
president, will nominate a new prime minister.
Lebanon has been
suffering an unprecedented financial crisis amid lack of US dollars,
leading to the currency to lose more than 90 per cent of its value since
2019, while also plunging over 70 per cent of the population into
poverty.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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