Comments on Lebanon in various Reuters articles, Sep 2021

Below is a compilation of comments given by Dr. Saidi on the ongoing economic/ financial/ social/ political situation in Lebanon (published in Sep 2021).

 

As part of the Reuters article titled “Inflationary pressures force Lebanese to make tough choices“, published 10th Sep 2021:

Some economists argue this will only add to the inflationary cycle and eventually lead to hyperinflation if sustainable reforms are not implemented.

“As soon as you get into that cycle whereby you have cost of living adjustments … but you don’t have any more revenue to fund them, you’re just printing money, then that creates a vicious cycle,” Nasser Saidi, a leading economist and former minister, said.

In the Reuters article titled “Explainer: Lebanon’s Mikati faces tricky path to safe economic ground“, published 14th Sep, the below comment appeared:

[The IMF] has also recommended recognising upfront losses at private banks and the central bank in a way that protects smaller depositors, and establishing a credible monetary and exchange rate system including the unification of multiple exchange rates, and accompanied by formal capital controls.

“The size of Banque Du Liban’s (BDL) losses is a critical matter: you cannot do any financial programming or plan any financial package for Lebanon without knowing the size of the BDL’s losses. These issues were brought up last year but were not resolved,” Nasser Saidi, a leading economist and former minister, said. “They are the elephant in the room.”

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