Following the discussion session titled “Is rescue an illusion or a reality, the goal remains to sustain Lebanon’s economic role,” conducted by 100% Liban, deputies, IMF and World Bank specialists, banking and financial professionals, and members of the 100% Liban group met to discuss the government’s proposed economic recovery plan.
Alternative programs that do not rely on writing off deposits can replace the government’s strategy that has been compared to a “toxic pill.” It is worth mentioning that the following are the primary themes that the delegates highlighted as initiatives toward saving the Lebanese economy:
1- The state must recognize its obligations and begin rescheduling its payments in order to contribute to the restoration of confidence.
2- It is important to understand that the foundations selected in the government’s recovery plan in collaboration with the IMF are fraught with danger, as they have not been tested or implemented in any country that has had a similar economic crisis.
3- The strategy involves questionable procedures. Instead, they are riddled with paradoxes and will cause great harm in the future if implemented.
4- The strategy undermines the financial sector’s fundamentals, resulting in excessive financial investments and initiatives.
5- The plan does not incorporate the required improvements in the management of public finances and does not boost public sector output in the short run. But will these reforms be achieved by the current government and the IMF?
However, the government’s planned strategy will not be enough to restart the economy, and we must reevaluate how to compute losses since they are not losses but obligations, and the state must reschedule it. It has become vital to deal with alternative proposals, based on the serious error that can be achieved in light of deposit write-offs. The state does not face a solvency crisis, and it can invest wisely in its assets while working to rebuild trust in the eyes of its citizens.
Finally, the delegates resolved to meet again in the future to elaborate on these alternative options and work on the proper actions to save Lebanon in the eyes of both resident and non-resident Lebanese.
