Lebanon faces a possible monetary crisis due to the lack of government

Lebanon faces a possible monetary crisis due to the lack of government

Lebanon is facing a possible currency crisis if it prolongs the political blockade that has prevented the formation of a government since the elections last May, the acting Finance Minister, Ali Hasan Jalil, said today.

The minister said, in statements collected today by the National News Agency, that the current financial crisis in the country can turn into a currency crisis that could lead to a "loss of confidence" in the country and its institutions.

"Any delay in the formation of the Government will have negative repercussions on the situation of stability in the country," the minister warned.

The prime minister, Saad Hariri, has so far failed in his attempt to reach an agreement to form a government due to the divergences between the main political groups in the country.

The main resistance has been raised by the Shiite group Hezbollah, which was reinforced in the elections last May and which wants a greater presence in Hariri's cabinet.

Analyst Hyam Mallat, a professor at the University of San Jose, told Efe that the formation of the government could "alleviate the situation of the Lebanese" by allowing carry out "the reforms demanded by the international community."

"The situation is frustrating, the socio-economic problem is increasingly serious, people are distressed and uneasy because they do not know, among other things, if they can continue sending their children to schools, if they can be hospitalized if necessary. , if they will have to continue paying two or three times the basic services such as water and electricity ", commented the analyst.

Lebanon has a debt of 83,000 million dollars and the country's economy faces the additional burden of serving more than one million refugees, Syrians and Palestinians.

The Arab country raised 11,000 million dollars, including loans and direct aid, at a donor conference held in Paris last April, but that budget can not be invested until the government is formed.

The absence of cabinet is not new in Lebanon, since the electoral system favors very fragmented compositions of the Parliament, what force to complex agreements between rival parties and of religious confessions in sometimes faced.

One of the most serious cases was that of former Prime Minister Tamam Salam, who took about ten months to form a government in 2014.


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