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Lebanese PM announces new financial strategy to save country from current crisis

Arab World Materials 1 May 2020 07:25 (UTC +04:00)
Lebanese PM announces new financial strategy to save country from current crisis

Lebanese Prime Minister Hassan Diab announced on Thursday a comprehensive financial plan to save the country from its financial and economic crisis, Trend reports citing Xinhua.

"This strategy is a clear roadmap aimed at managing the government's public finances. We are on the right track to save Lebanon from its crisis," Diab said during a televised speech following a meeting for the government to put the end touches on the plan.

Diab explained that the strategy is based on six pillars including the financial, economic, banking, monetary, social security and development factors.

"We have discussed this strategy with economic and financial experts, representatives of the various economic and industrial sectors, the civil society and we came up with a transparent plan that can be supported by all the Lebanese," Diab said.

The prime minister said financial reforms must start right away in the country to enable Lebanon to unlock 10 billion U.S. dollars in external support in addition to the funds pledged by CEDRE which will result in positive growth starting 2022 and the reduction of the debt to GDP ratio from 170 percent to less than 100 percent.

CEDRE refers to the Conference for Economic Development and Reform through Enterprises, hosted by France in 2018 to help Lebanon raise funds to finance its plan to modernize its infrastructure and develop economy.

Diab said that the government's strategy will activate the production sectors to create job opportunities for the Lebanese.

He noted that the government will focus on reforming the electricity sector and tax system, in addition to recuperating stolen public funds.

Also, Diab vowed to protect small depositors' money while implementing haircut on people who have benefited from high interest rates in the past and the financial engineering implemented by the Central Bank of Lebanon.

Diab also noted that the government will contribute to paying the the losses incurred by previous failing practices of successive Lebanese governments by selling assets of the central bank and the government.

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