Lebanon; state, central bank go bankrupt

The state of Lebanon and its central bank have gone bankrupt, Deputy Prime Minister Saadeh al-Shami announced on Monday.

“The state has gone bankrupt as did the Banque du Liban, and the loss has occurred, and we will seek to reduce losses for the people,” al-Shami told reporters.

He said the losses would be distributed among the state, the Banque du Liban, banks, and depositors.

“There is no conflict of views about the distribution of losses,” the Lebanese official added.

Since late 2019, Lebanon has been grappling with a severe economic plight, including a massive currency depreciation, medical shortages, being unable to afford consistent fuel imports, and leaving the majority of the country without consistent power.

The Lebanese currency Lira has lost 90 percent of its value, eroding people’s ability to access basic goods, including food, water, healthcare, and education, while widespread power outages have become common due to fuel shortages.

The country’s situation “cannot be ignored” hence bank withdrawals cannot be open to all people, al-Shami added.

“I wish we were in a normal situation,”

Since 2019, cash withdrawals in foreign currency in Lebanon have been strictly limited due to the ongoing dire economic situation.