Lebanese Deputy Prime Minister Saadeh Al-Shami stated that Lebanese officials have agreed to estimate the financial sector's losses in the country at between 68 and 69 billion dollars. However, he warned that this figure is based on certain assumptions that may change. The agreement on the scale of losses is considered a necessary first step for the Lebanese government as it seeks to negotiate a support program from the International Monetary Fund (IMF).
In statements made yesterday, Al-Shami noted that the figures are based on "certain assumptions... if those assumptions change, the scale of the losses will change as well." He refrained from providing further details. Last year, disagreements over the scale of the losses among Lebanon's central bank, commercial banks, and the government led to the collapse of negotiations for an IMF support program, which is seen as essential to help Lebanon emerge from its worst crisis since the Civil War that lasted from 1975 to 1990.
The estimated figure of between 68 and 69 billion dollars coincides with the total estimate provided by the government at that time. Prime Minister Najib Mikati stated that he is aiming to sign a memorandum of understanding with the IMF by the end of the year.
In another development, the Lebanese agency reported that the central bank will organize the repayment of commercial loans in foreign currencies in cash in Lebanese pounds at a rate of 8000 pounds to the dollar. Additionally, the National News Agency reported that the central bank will provide banks with their cash share for the remainder of December in US dollars instead of Lebanese pounds, as part of measures to curb the sharp decline of the local currency. The official agency added that the central bank will arrange for the repayment of commercial loans in foreign currencies in cash in Lebanese pounds at a rate of eight thousand pounds to the dollar. It is hoped that this will "reduce the demand for dollars and increase the demand for the Lebanese pound in the markets," as stated by the agency.
