IMF: Politics Threatens Lebanon’s Economy

As Lebanon faces the fallout from the civil war in neighboring Syria and the influx of refugees estimated at a quarter of the Lebanese population, the IMF has called on Lebanon to adopt a “credible and balanced fiscal adjustment strategy to prevent further fiscal deterioration, reestablish primary surpluses, and put public debt on a sustainable path.”

The security situation worsened this week with clashes between the Lebanese army and Islamic State of Iraq and Greater Syria (ISIS) Jihadists in the northeastern Lebanese border town of Arsal. Saudi Arabia on 6 August said it was granting Lebanon an additional $1bn of military assistance in order to help Beirut fend off the Jihadist assault. This comes on top of a Saudi pledge in January to grant $3bn to the Lebanese army for spending on French arms. (CONTINUED - 815 WORDS)