A commitment has been made by the government of Lebanon to maintain the value of the Lira against a stronger and more stable currency, like the EURO or the $US. The public debt has reached new highs this year, up to $23 billion or 140% GDP as stated in the August issue of the Lebanon Opportunities magazine.
For a successful banking sector in Lebanon, the last devaluation in ‘92 was a disaster
and the government intends to focus on privatization to relieve the debt.
In the last decade, there was a significant decline in imports, which on such a small market clearly indicated a decline in consumption and investment. On the other hand, the exports are slightly rising. The Lebanon Opportunities magazine states that "the volume of exports is only 12.1%of the volume of the imports", therefore the trade balance is still negative but slightly improving.
The solution offered by the government is a $5 billion privatization plan which would send a good sign to the international markets that the "government is serious about
fiscal adjustments”. –(Albawaba-MEBG)
