Category: Economy
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Association of Banks in Lebanon (ABL)’s Response to the Release of the Government’s Financial Recovery Plan
On April 30, 2020, Lebanon’s new Prime Minister Hassan Diab revealed the economic recovery plan, which has been crafted keeping in mind the financial crisis the country is reeling under currently. As a pre-condition for assistance, the IMF (International Monetary Fund) insisted that Lebanon needs to have a recovery plan ready. With the release of…
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Rising Income Inequality in Lebanon
While Lebanon’s civil war came to an end way back in the 1990s, the situation doesn’t seem to have improved – at least on the financial front. Rapidly expanding public debt has led to an ever-increasing socio-economic disparity in the country and this grave issue now threatens the country’s stability. Only when you look at…
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The collapse of the Lebanese Pound
The Lebanese dollar deposits are imprisoned in the banks. Government regulations prohibit the money from being withdrawn from the same owners. As result, individuals and companies have started protesting for their money, whether local or foreign currency. To ease dollar transactions, mainly for importers, the central bank decided to raise the liquidity ceiling. However, this…
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Unemployment is bringing new industries to surface
Lebanon is currently suffering from cyclical but structural unemployment. It is mostly driven by corrupted major political and social parties and other issues. They have slowed down economy and the creation of jobs in the past years. In addition to that, there is a growing gap between the labor supply and labor demand in the…