Government resignation, lack of policy dry up Lebanon’s hopes for external funding

      Published on Wednesday, 12 August , 2020      1539 Views     
Government resignation, lack of policy dry up Lebanon’s hopes for external funding

  • World News

Lebanon’s Prime Minister Hassan Diab announced his government’s resignation on Monday evening after a powerful Beirut port explosion triggered demonstrations and a public uproar against its leaders.

The political instability as well as the lack of economic and fiscal policy reforms have exhausted the debt-ridden country’s hopes for external funding, according to experts.

“The resignation of the government of Lebanon in the wake of the recent explosion highlights the credit-negative impact of sectarian fragmentation on political stability and on institutions and governance strength,” Moody’s Vice-President, Senior Analyst Elisa Parisi-Capone.

“While the IMF and the international donor community have reiterated their commitment to financially support Lebanon to bear the costs of the disaster, over time, in the absence of key steps toward plausible economic and fiscal policy reform, sustained official external funding support to accompany a government debt restructuring will not be forthcoming,” Parisi-Capone said.

Category World News | 2020/08/12 latest update at 6:00 AM
Source : Zawya | Photocredit : Google
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