Lebanon draft crisis plan sees need for $10 billion-$15 billion and depositor contribution

Lebanon draft crisis plan sees need for $10 billion-$15 billion and depositor contribution

While mapping out losses of $83.2 billion in the economy, the plan noted that a "full bailout of the financial sector is not an option.". It set out a restructuring of the central bank and commercial banks to include "a transitory exceptional contribution from large depositors" and outlined a special fund to compensate depositors' losses that result from restructuring.. The plan indicated the exchange rate weakening to 2,607 pounds to the dollar in 2021 and to 2,979 in 2024.. The plan estimated about $40 billion in central bank embedded losses, the result of "years of loss-making financial transactions" aimed at accumulating FX reserves to defend the peg and cover a balance of payments funding gap..