Lebanon adopts a vast reform plan to get out of the crisis

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The Lebanese government has adopted a vast reform plan to try to get the country out of the unprecedented economic and social crisis that has hit it since last fall. This announcement comes after violent demonstrations have been shaking the country for several days.

Publicity

With our correspondent in Beirut, Paul Khalifeh

Described as historic by the President of the Republic, Michel Aoun, and the Prime Minister, Hassan Diab, the reform plan impatiently awaited by the international community sets goals over five years such as the restructuring of the banking sector, the revival of the real economy and consolidation of public finances.

The ambitions are great but the means limited. Lebanon wants to count on the international support of donor countries, who promised $ 11 billion at the Paris conference in 2018 but also the International Monetary Fund (IMF) from which Lebanon hopes to obtain $ 10 billion.

Convince the Lebanese

According to Hassan Diab, the reform plan provides for positive growth from 2022, reduction of the public debt to less than 100% of GDP, and a surplus budget from 2024.

Today, all indicators are in the red. Debt reaches $ 92 billion, or 170% of GDP. The budget deficit is around 10% and the trade and payment balances are in deficit.

The government must now convince the Lebanese of the effectiveness of these reforms. First, the demonstrators, who express their anger every day. But also the political class, which can hinder their implementation. Michel Aoun summoned the heads of the parliamentary blocs to a meeting next Wednesday to explain the rescue plan to them.

► Read also: The crisis in Lebanon takes a violent turn

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