Lebanese caretaker Prime Minister Najib Mikati voiced concerns over the state of Lebanese banks, emphasizing their inability to function and engage with international financial markets.
In a statement made this Saturday, Mikati remarked, “This isn’t the first time we’ve faced such obstacles and hindrances. From the outset of our government, we’ve been acutely aware of the challenges awaiting us. Recently, however, we sense deliberate efforts to block our path and hamper even our routine administrative functions, despite our warnings.”
Mikati expressed frustration over the lack of initiative to proceed with necessary steps for conducting presidential elections, which could end the current governmental void. He also stressed the persistent resistance against the endorsement of crucial reform laws, imperative for a recovery plan. Despite extensive discussions and preparedness, the laws have not been ratified, according to statements published by Lebanese newspaper Al-Nahar.
Further, Mikati pointed out a deliberate hindrance in passing legislation to restructure the banking sector.
Global credit rating agency, Standard & Poor’s Global, maintained Lebanon’s foreign currency credit rating at SD/SD and the local currency credit rating at CC/C. The agency’s outlook for long-term local currency credit rating remains “negative.”
The agency suggests that there is no anticipation of significant policy improvements in the near future. It did, however, add that revenue collection at the exchange rate on the “Sayrafa” platform would modestly alleviate financial bottlenecks starting from 2023, as reported by Reuters. The “SD” rating implies that the rated country may selectively default on some obligations.
