Where is the financial crisis going in Lebanon?

Banking risk expert Mohamed Ibrahim Fahili said the Lebanese government’s reading of the banking and economic crisis is not heading in the right direction.

In an interview with Al-Arabiya, Fahili explained that the central bank has asset which allow it to save the Lebanese economy, but there is a liquidity crisis, adding: “The same goes for commercial banks, which have huge assetbut at the same time suffer from a lack of liquidity “.

Fahili said there is a way to reorganize this liquidity to prevent economic choking, noting that liquidity helps individuals finance their consumption bills and helps institutions finance operating expenses.

He stressed that the restructuring of benefits to the central bank or commercial banks would reduce the burden of the funding gap within the country.

For its part, the Association of Lebanese Banks rejected the latest draft of the government’s financial recovery plan, noting that it is disastrous. in how much it receives almost all the part of the loss deriving from the policies adopted by the state on the shoulders of the banks and depositors.

The government estimates the losses of the financial sector in about 72 billion dollars.

Interestingly, the current draft establishes a number of financial reforms, including banking sector reform and setting caps on the amounts depositors can recover from their accounts.

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