Home Economy Outgoing Lebanon Government Approved Economic Recovery Plan

Outgoing Lebanon Government Approved Economic Recovery Plan

Outgoing Lebanon Government Approved Economic Recovery Plan
Photo Courtesy: Dalati Nohra

According to the country’s Communications Minister, Lebanon’s outgoing administration authorized a recovery plan on May 20 to help the Mideast country overcome its economic woes. The news broke at the Cabinet’s final official meeting before transitioning to a caretaker government following the parliamentary elections. The article contains Outgoing Lebanon Government Approved Economic Recovery Plan.

The plan is the first step on a long road to pulling Lebanon out of its worst economic situation. The issues that exploded in October 2019, sparking widespread protests, result from decades of corruption and incompetence. The plan involves revamping the country’s hard-hit banking system and altering decades-old financial secrecy regulations, which Parliament must still approve.

The International Monetary Fund (IMF) has prioritized the economic recovery plan. However, Lebanon’s government inked a tentative agreement with the IMF last month for comprehensive economic policies that could pave the way for some relief. The IMF and the international community have demanded that Lebanon complete broad economic and financial reforms before receiving billions of dollars in loans and investments.

In March 2020, Lebanon declared itself bankrupt and acknowledged its inability to repay large sums of money. At the time, the country’s debt stood at $9000cr, or 170% of the country’s gross domestic product (GDP). As a result, Lebanon became the world’s largest borrower. 

The Najib Mikati government has sanctioned 35 million dollars for one month’s supply of medicines for cancer patients and four months for patients suffering from incurable diseases. Again, the Cabinet has approved increasing the price for telecommunication from July 2022.

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