Lebanon has the third largest public debt-to-GDP ratio in the world at around 150 per cent and has suffered from years of low economic growth.
Thursday 10, January 2019 BY KUDAKWASHE MUZORIWA
Lebanon’s ministry of finance is preparing a ‘financial correction’ plan that includes restructuring public debt.
Ali Hassan Khalil, the Lebanese Finance Minister, said that the plan had not been revealed to anyone.
The development is subject to decisions in the cabinet, the involvement of parliamentary blocs and the central bank, as well as others who are concerned with the solutions that the ministry will propose to spare Lebanon dramatic developments.
Rating agencies, Fitch and Moodys, revised the outlook on Lebanon to negative from stable last month.
The public debt cannot continue in this way, added Khalil.
Lebanon has been without a government since May 2018 as politicians continue to wrangle over the make-up of a new national unity cabinet, reported Reuters.