International rating agency Fitch IBCA has affirmed Lebanon’s long-and short-term foreign currency ratings of BB- and B respectively.
IBCA indicated that it continues to be concerned at the fragility of Lebanon’s public finances, with public debt standing at 135 percent of GDP. The agency highlighted the fiscal reform taken by the current government in 1999, which led to a substantial improvement in tax collection and controlling expenditure; though it sees the implementation process as being partially delayed by the elections.
Moreover, Fitch stated that “the prolonged recession makes fiscal discipline economically and politically difficult with little sign of improvement”. It also expects growth of only 1 percent in 2000 following zero growth the year before. — ( Banque du Liban et d'Outre-Mer Sal )
© 2000 Mena Report (www.menareport.com)
