Lebanon deputy PM announces country’s bankruptcy, voices hope over IMF deal

CAIRO – 4 April 2022: Lebanese Deputy Prime Minister Saada Al-Shami announced, Monday ‘the bankruptcy of the state and the Central Bank of Lebanon’.

He added in statements, Monday that the losses would be distributed to the state, the Banque du Liban, other banks and depositors.

Al-Shami voiced hope over clinching a preliminary deal between Lebanon and the International Monetary Fund (IMF) on a package to exit a deep financial crisis in the country.

In statements, Monday, Al Shami said negotiations are currently underway between the Lebanese government and the IMF as he is chairing the ministerial committee assigned to negotiate with the IMF mission, currently visiting Lebanon.

He said talks with IMF covered the restructuring of the banking sector, an economic recovery plan, approval of the budget of the House of Representatives as well as a capital control draft bill which was approved by the Lebanese cabinet in its session held last week in Baabda presidential palace under the chairmanship of President Michel Aoun

Lebanese Prime Minister Najib Mikati called for rallying all efforts to stop the collapse of the country’s economy, saying that Lebanon has no other option but to cooperate with the International Monetary Fund (IMF).

During the cabinet meeting, Mikati said the government has realized the enormous challenges facing it since day one, adding that the government has great responsibility to save the national economy from falling apart.

The Lebanese prime minister urged all political rivals to set aside their disputes to get the country out of this quagmire