BDL in crisis management: Lebanon faces short-term solutions for state funding

BDL in crisis management: Lebanon faces short-term solutions for state funding

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2023-08-07 | 10:55

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BDL in crisis management: Lebanon faces short-term solutions for state funding

Governmental sources have indicated that immediate solutions for state funding, mainly securing salaries and wages, may be available in the short term while utilizing the remaining Special Drawing Rights (SDR).

Potential treasury revenues in dollars, estimated at around 35 percent of the total budget of about $2 billion, could offer some relief.

However, these sources expressed concerns over the prolonged duration of the crisis.

According to the sources, the absence of a president for the republic could lead to halting dollar-denominated salary support, as the gap between market rates and the Sayrafa exchange rate remains around LBP 4,000.

To address this issue, the government might consider increasing this gap in local currency, contingent on maintaining the current exchange rate stability.

Furthermore, the state could collect dollars from the market through customs fees in dollars for a specific amount of time, provided that certain legal amendments are made.

The sources revealed that there are dollar-denominated consequences that cannot be disregarded, including the repayment of loans to international institutions and financial funds, as well as funding for critical medications and partial financing for wheat imports.

On the other hand, there has been no communication yet between