Lebanese government approves plan to deal with worst financial collapse in country’s history

Beirut – Reuters

On Thursday, the Lebanese cabinet approved its political plan to deal with the worst financial collapse in history.

As Lebanon plunges into the abyss of economic collapse, three quarters of its population are on the brink of poverty and the local currency has lost 90% of its value in the past two years.

The government of new Prime Minister Najib Mikati met at the presidential palace on Friday after a year-long political stalemate and accepted a motion to be tabled in parliament for approval.

The draft document includes the resumption of talks with the International Monetary Fund and the restructuring of the banking sector. An official source said the government accepted the plan without any major changes to the project.

The Lebanese pound has risen significantly against the dollar in the past week since the government was formed, after hitting $ 23,000 last month, selling around $ 13,800 against the US dollar on Thursday.

The draft plan indicated that the Mikadi government would revamp the previous financial stimulus package, which fixed the deficit at around $ 90 billion, which had been approved by the International Monetary Fund. The World Bank has described Lebanon’s financial crisis as the worst recession in modern history.

The scale of the losses was a major sticking point that led to the collapse of the plan last year, which was opposed by key politicians and bankers, which ultimately led to the suspension of negotiations last summer. .

Some believe that the rapid decline in living conditions over the past year and the shortage of basic commodities such as fuel and medicine, which have crippled almost every aspect of life, will prompt politicians to make decisions. . Previously rejected.

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