The Lebanese government approved, Thursday, April 30, a plan to revive the economy on the brink of the sinking of the country of the Cedar where, in favor of the deconfinement, the demonstrators took to the streets to cry out their anger.

Lebanon will also ask for help from the International Monetary Fund (IMF), Prime Minister Hassan Diab announced today. "We are going to request an International Monetary Fund program," the head of government said in a televised address, saying that the stimulus package adopted by his government would put the country on the path to "financial and economic rescue".

The containment measures taken to combat the new coronavirus have amplified an already acute economic crisis, the worst since the Lebanon War (1975-1990): inflation still on the rise, shortage of liquidity and sharp depreciation of the currency against the dollar , used in the same way as the Lebanese pound in everyday life.

The adoption of the recovery plan comes after three consecutive nights of violence in the city of Tripoli (north), where demonstrators beat the pavement to denounce a fall in their purchasing power.

Crisis in Lebanon: New clashes between demonstrators and soldiers

The economic sinking was one of the triggers in October 2019 of an unprecedented uprising against the entire political class, accused of corruption and incompetence.

"The Council of Ministers unanimously approves the economic plan," the presidency said on Twitter after a government meeting. Few details have leaked out on the plan but Prime Minister Hassan Diab is scheduled to deliver a speech at 5 p.m. (2 p.m. GMT).

"By adopting the recovery plan, we are putting the wagons on track," said the head of government during the meeting, welcoming a "practical plan which includes an economic vision for the future of Lebanon".

The plan is vital and the authorities hope it will be deemed sufficiently credible by the international community to release aid.

According to media leaks, $ 80 billion (around 73 billion euros) is needed to emerge from the crisis, including between 10 and 15 billion dollars in external funding over the next five years.

The planned reforms include cuts in public spending and a restructuring of government debt, which stands at around 170% of GDP, one of the highest rates in the world.

Time is running out for Lebanon, which announced in March that it was in default, a first in its history.

According to official estimates, 45% of the population lives below the poverty line and in recent months tens of thousands of people have lost their jobs or have their wages reduced.

Crisis in Lebanon: the challenge resumes against a background of deconfinement

With AFP

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