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The Lebanese government's many and extremely varied political interests will continue to threaten the pace of reform, but at least for the moment, a fully-trained government has allowed Lebanese bondholders to breathe a sigh of relief, said Daniel Marc. Richards, MENA, Dubai-based economist at Emirates NBD Bank.
"Although easier said than done, especially in light of the various stakeholders represented within the government, the obvious commitment in this regard is encouraging and will help curb the growth of the government. Lebanon's debt, "said Richards in a report this week. The bank expects Lebanon's growth in 2019 will be only 0.9%.
Although the Lebanese economy remains grappling with major difficulties, "the risk of a crisis seems to have been avoided for the moment," he said, adding that the country had reserves equivalent to about 11 months of liquidity for pay for imported goods. "The reforms are still essential, but Lebanon has been suspended for the moment."
The recent good news has cleared fears of an economy in crisis. At over 160%, Lebanon's debt to gross domestic product (GDP) is the third highest in the world, and the Moody rating agency has lowered its credit rating from "B3" to "Caa1" in January. able to pay his mbadive debts. Growth in the country of 6 million is stagnant, slowed by the influx of about 1.5 million Syrian refugees and by increasingly tense and inadequate infrastructure.
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