IMF team in Lebanon to discuss deep economic crisis

A delegation from the International Monetary Fund (IMF) began talks on Thursday with Lebanese leaders, as the country seeks assistance to ease its deepening economic crisis.

The delegation met Lebanese Prime Minister Hassan Diab and the country’s Finance Minister Ghazi Wazzini.

The talks come as Lebanon is still weighing how to deal with the repayment of a 1.2 billion dollar Eurobond due on March 9.

A government source said that Lebanon had yet to decide if it would default or pay the Eurobond.

The source added that the aim of the IMF delegation’s current trip is to gather data for a preliminary appraisal of the situation in the heavily debited country.

Lebanon, which is experiencing its worst economic crisis since the civil war 1975-1990, has been engulfed by protests since Oct.17.

This had led to the resignation of Saad Hariri as prime minister almost two weeks later.

The country is under pressure from the World Bank and the IMF to impose austerity measures in return for financial support.

Lebanon has one of the biggest public debt ratios in the world, equivalent to about 150 per cent of gross domestic product (GDP).

Lebanon’s banks have been imposing an announced capital control, allowing people to withdraw certain amounts from their dollar or Lebanese accounts.

Since the eruption of the protests, the local pound has sharply fallen against the dollar, which is widely used in the country.

On Thursday, foreign exchange offices were trading the dollar at more than 2,400 Lebanese pounds. (dpa/NAN)