One of the main sticking points with the IMF, not to mention with the Ministry of Finance, is the treatment of the Lebanese Government’s debt to BDL. BDL had insisted on counting this $16.5 billion in debt when devising its plan to close the financial gap and to return deposits back to its rightful owners; whereas the IMF/MoF seem to insist that it shouldn’t. As a compromise, latest proposals show that BDL would agree that the government commits to returning (as part of financial gap closure/deposits retrieval) almost half of its debt, at $8.7 billion. But it seems even that is still questionable, and at this juncture it is under discussion with the IMF team currently visiting Lebanon to iron out the draft of the financial gap law.
We present in this report a few important thoughts on why the Lebanese government should repay its debt to BDL/depositors in full; barring that, at least in half.
For the full report, click on the link below:
Some Neglected Thoughts about the Lebanese Government’s Debt to BDL