 Sami Geadah
The ongoing financial crisis in Lebanon was precipitated by unsustainable borrowing by the government. Government debt reached 172% of GDP in 2019, an unusually high level globally, including relative to countries facing debt difficulties. This level of debt would not have been possible without the support of the Banque du Liban (BdL) and the participation of domestic banks. Central bank operations aimed at securing a specific amount of inflows from abroad—including nonresident deposits—to help finance the government deficit and maintain a fixed exchange rate. |