• Reminders, Hajira Mzobe
    Tue, 2:05 pm - 3:00 pm
    [ - ]

Radio Islam Logo

((( Listen Live )))))
Radio Islam Logo

Has Lebanon gone bankrupt?

Apr 08, 2022

Jadaliyya - The Lebanese Economic Crisis 101 (Part 1)


By: Zahid Jadwat


It turns out the widely-reported statement by Lebanese Deputy Prime Minister Saade al-Shami was made in jest, but Lebanon has not formally declared bankruptcy.


“Unfortunately, the state is bankrupt, as is the central bank, so we have a problem … the loss has occurred,” Deputy Prime Minister Saade al-Shami said during an interview on Sunday (April 3).


The next day, al-Shami told local broadcaster OTV he had been speaking about the state’s inability to contribute significantly to bridging financial sector losses, “which means it has no liquidity”. 


In an interview on Radio Islam, Habib Battah, an investigative journalist and editor of the news website, said el-Shami’s comments were in reference to the Middle Eastern nation’s overall economic troubles.


“It wasn’t a formal declaration of bankruptcy – it was just a statement that was said in jest on a television show and then the Prime Minister came out and said it wasn’t; they still have some kind of assets that were left. He meant that in a big-picture sense and not in a general sense. The country doesn’t have a lot of money and that’s true. People have seen their salaries and savings go down by 90%. So we’ve already experienced a crash and this is just stating the obvious,” Battah said.


Lebanon is in the third year of a financial implosion caused by decades of corruption and poor policies that have led the currency to devalue by more than 90%. Earlier this year, a draft government financial rescue plan estimated a roughly $70 billion (R1 trillion) hole in the financial sector.


Battah said: “What it has meant for us is that the entire country has lost billions of dollars. The country defaulted on its debts recently… what it meant is a downgrade in the country’s economy by rating agencies and people’s money has very little value”.


Listen to the full interview here:


Prime Spot!!!


Related Articles

Can any one individual still save the ANC in Gauteng?

Can any one individual still save the ANC in Gauteng?

By Neelam Rahim There was fierce electioneering at the weekend as the ANC held its Gauteng conference. Panyaza Lesufi and Lebogang Maile accepted nominations for the chairperson position at the provincial conference. Nomantu Nkomo-Ralehoko and Mzi Khumalo stood for...

read more
Debunking Quick Money Scams Amidst SA High Cost Of Living

Debunking Quick Money Scams Amidst SA High Cost Of Living

Written by Umamah Bakharia  The rapid rise in the cost of living, job losses, and low income mean South Africans struggle to survive financially. And that is making them more vulnerable to fraud. The Direct Selling Association of South Africa has warned that in their...

read more

Subscribe to our Newsletter


Submit a Comment

Your email address will not be published.