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Lebanon goes bankrupt: Deputy Prime Minister

Lebanon as a State, and its Central Bank, has gone bankrupt, according to Deputy Prime Minister, Saadeh Al-Shami.

Lebanon as a State, and its Central Bank, has gone bankrupt, according to Deputy Prime Minister, Saadeh Al-Shami.

"The State has gone bankrupt as did the Banque du Liban, and the loss has occurred, and we will seek to reduce losses for the people," Al-Shami told the local Al-Jadeed channel.

Prime Minister Najib Mikati: Lebanon heading towards collapse - Cartoon [Sabaaneh/Middle East Monitor]

Prime Minister Najib Mikati: Lebanon heading towards collapse – Cartoon [Sabaaneh/Middle East Monitor]

He said the losses will be distributed among the State, the Banque du Liban, banks and depositors.

"There is no conflict of views about the distribution of losses," he added.

Since late 2019, Lebanon has been grappling with a severe economic crisis, including a massive currency depreciation as well as fuel and medical shortages.

The Lebanese currency has lost 90 per cent of its value, eroding people's ability to access basic goods, including food, water, healthcare, and education, while widespread power outages are common due to fuel shortages.

Al-Shami said the country's situation "cannot be ignored" hence bank withdrawals cannot be open to all people.

"I wish we were in a normal situation," he added.

Cash withdrawals in foreign currency in Lebanon have been strictly limited since 2019, due to the ongoing economic crisis.

READ: Lebanese President says UN report on Resolution 1701 did not reflect reality

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