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The formation of the Lebanese government failed to exacerbate the deteriorating economic situation in the country, which is still unable to advance the momentum needed to advance the recession.
The seven-year-old Lebanese economy has rushed to a catastrophe that could lead to "bankruptcy" if the reform aimed at halting the waste of money in state institutions and fighting against corruption is not implemented to relaunch economic indicators.
In recent years, Lebanon faces two problems: the first is financial: it is linked to the increase of the public debt to 152% of the GDP of the country, and the second is economic: low economic growth The hard currency is disappearing and the war in Syria has been complicated.
Lebanon faces economic and political difficulties after the delay of the formation of the government, after the mandate of Saad Hariri, since May 24.
Faced with the deterioration of the economic situation, the Speaker of the Lebanese Parliament, Nabih Berri, warned today of the consequences of delaying the formation of the Government on the economic situation. The country
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Berri expresses dismay at the delay in forming the government following the debate on the cabinet reshuffle: "Bless the country, the people and the economy ". OK, and already warned of the difficult and bad economic situation. "
The Speaker of Parliament asked … What benefits and benefits for the country and the people of the collapse of the economic situation ?, The situation should not continue as it is and the harm we have reached. "
The economic situation demands, and should never escape responsibility, and must also work to form a government quickly, according to" Anatolia ".
The delay in the announcement of the formation of the government is mainly due to the demands of the Lebanese political forces in the power of representation in the new cabinet. The Governor of the Bank of Lebanon, Riad Salameh, reiterates that Lebanon's financial situation is sound and stable, ensuring that the monetary situation is stable and that there is no risk to the exchange rate . [95,960] And that Lebanon has managed to stay away from all regional and international crises, the economic situation is not rebaduring and optimistic, according to all local and international studies, including those issued by the World Bank and the International Monetary Fund.
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Various opinions suggest that the complex political situation of the country does not inspire confidence in domestic and foreign investors and that in case of delay in the formation of a government capable to implement the reforms required at the Cedar Conference, Lebanon will not receive the necessary loans. Rehabilitate its economy, rebuild basic infrastructure such as electricity and communications, and improve and maintain road networks. Since the beginning of the 1970s, the policies of all governments have stagnated, which has been reflected in the political, economic and social development movement: the Lebanese wars between 1975 and 1989 have weakened the authority, lost its sovereignty and destroyed it. Economic structures, according to "life".
The Impact of the Real Estate Market
A delay in the formation of the government also caused a strong pressure on the real estate market, A decline in the number of buildings sold since the beginning of the year about 23% compared to the figures of last year.
In contrast, the supply of apartments for sale increased by about 6%, which put pressure on real estate prices in the direction of the consecutive decline , and negatively affects the financial situation of real estate companies, including "Badawi Group" and "SAFCO" The past to a wave of protests due to delays and procrastination in the delivery of apartments to their buyers, due to lack of liquidity, or commercial disputes.
According to official figures, the real estate crisis in Lebanon began in 2011, but it has accumulated and worsened in the last two years due to banking restrictions on loans. The period of resignation of President Saad Hariri in 2017 was a difficult turning point that brought Lebanon to a critical juncture that prompted the Central Bank to stop housing loans. Supported by benefits.
Moussa adds that these measures add to the Lebanese economic crisis and are a severe blow to the real estate sector, which is struggling to resist. The result lowers its sales by about 65%, with a price drop of about 25%, and calls for accelerating government training that lasts Consultations without justification, with the preparation of. an economic bailout involving the banks, according to "Erm News".
The distribution of portfolios between the political forces concerned differs, which delays the formation of the new government by Saad Hariri, the Prime Minister-designate, following the legislative elections of May 6th.
Hariri began to consult political parties, with the aim of reaching a national unity government, which includes various political parties.The Lebanese constitution does not obligate the Prime Minister minister charged with a specific period to form the government.
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Source: editorial editor
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