Lebanon approves financial rescue plan with ‘painful steps’ – ZAWYA

Lebanon approves financial rescue plan with ‘painful steps’ – ZAWYA

Prime Minister Hassan Diab's new government is facing a liquidity crunch, shattered confidence in banks which have imposed informal controls, a weakened Lebanese pound and soaring inflation. BEIRUT - Lebanon's government on Thursday approved a rescue plan to pull the country's from its worst financial crisis in decades, including interest rate cuts, recapitalisation of banks and other "painful steps", according to a copy seen by Reuters.. In its statement, Diab's government pledged to come up with an emergency plan by the end of February that addresses people's needs and the country's debt maturities.. The policy plan - which had minor changes from a draft seen by Reuters on Sunday - said banks must use their reserves and sell their investments abroad to help restore the sector's stability.. Hezbollah's parliamentary bloc said on Thursday that decisions on the country's debt maturities in coming months would need national consensus..