Lebanon’s severe economic and financial crisis is likely to rank as one of the worst the world has seen in more than 150 years, the World Bank said in a report released Tuesday, the Associated Press reported. The World Bank said that since late 2019, Lebanon has been facing compounded challenges, including its largest peace-time economic and financial crisis, the spread of coronavirus and a massive blast at Beirut’s port last year that is considered as one of the largest non-nuclear explosions in history.
Lebanon's caretaker prime minister warned Saturday that the country was quickly headed toward chaos and appealed to politicians to put aside differences in order form a new government that can attract desperately needed foreign assistance, the Associated Press reported. Hassan Diab, who resigned almost seven months ago as prime minister, threatened to suspend his caretaker duties if that would increase pressure for a new Cabinet to be formed.
Lebanon’s parliament passed a law on Monday to lift banking secrecy for one year in a move that could clear the way for a forensic audit of the central bank, a key condition for foreign aid that has hit a roadblock, Reuters reported. Such an audit is on a list of reforms that donors have demanded before helping Lebanon climb out of a financial crisis without precedent. These include steps to tackle corruption, a root cause of the meltdown that has crashed the currency and triggered a sovereign default.
Lara Mustafa and Wassim Hachem are among thousands of university students caught up in Lebanon’s financial crisis, which started in 2019 with popular protests against leaders whom demonstrators blamed for corruption and mismanaging the economy, Reuters reported. An insolvent banking system, which had lent more than two thirds of its assets to the central bank and state, shut out all depositors from their dollar accounts, and Lebanon defaulted on its debts. The COVID-19 pandemic added to mass job losses and business collapses. Lebanon traditionally prides itself on its education system.