Economic Wizard Enriches himself

Riad Salameh the Central Bank of Lebanon’s Chief since decades once widely acclaimed as an economic wizard now faces the ire of the public due to the worst economic crisis and prolonged depression Lebanon is going through. The economic crisis worsened as cross border trade reduced to a trickle after the Syrian war started in 2011 and tourism dwindled. Lebanon was a transhipment hub yet this failed to prevent an economic rout. Since the year 2019 the economy is in shambles. Salameh is presently accused by the state prosecutors of embezzlement, money laundering and illicitly enriching himself. Three European countries forfeited his assets held abroad and valued at 120 million Euros.

Credit France 24

Lebanon defaults on a $ 1.2 billion bond repayment

The Central Bank and the political elite failed to restructure and reform the economy and public debt kept increasing. Its banks are insolvent . Lebanon defaulted on a $ 1.2 billion bond repayment in the year 2020 and savings of most Lebanese have been wiped out.Short term measures such as artificially maintaining the value of the Lebanese pound and curbing the amounts that could be withdrawn from banks did not prevent the pound from losing almost 90 % of its value against the US dollar. Annual inflation rate is at 170 %.

Prior Conditions to be met Before IMF Bailout

Multilateral agencies want prior actions such as audit of the Central Bank and slashing of public sector expenditures prior to unlocking of assistance from the IMF.More then three fourth of Lebanese are mired in poverty ,food and medicines are not affordable and long lines are witnessed at fuel stations.The economic crisis has paralysed life in Lebanon.