IMF: There is No Breakthrough for the Lebanese Economic Crisis

  • Beirut, Lebanon
  • 27 June 2020

Managing Director of the International Monetary Fund Kristalina Georgieva has indicated that there is no reason yet to expect a breakthrough for the economic crisis in Lebanon.

Georgieva pointed out, during a seminar organized by Reuters through the Internet, that the global economic crisis caused by the Coronavirus may eventually be a test of the trillion dollar resources of the fund, but we have not yet reached that point.

She considered that it is now clear that recovery from the interruption of business and travel activities globally should start in the absence of medical progress, despite the widespread presence of the virus globally, stressing that the IMF member states are ready to provide more support to the fund if the need arises.

The International Monetary Fund expected a deeper global economic recession than previously expected, as business activities continued to be interrupted. It also expected a contraction of 4.9% of global GDP this year and a total lost production of $12 trillion until the end of 2021.

Georgieva emphasized that "we still have about three-quarters of the lending capacity, but I will not ignore that we may be in a situation where our debt resources are exposed to about three-quarters of the lending capacity, nor will I ignore that we may be in a situation where the IMF resources are being tested, but we did not reach that point yet. "

Source (Reuters, Edited)

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