Lebanon resumed talks with the International Monetary Fund that had stalled for a year and a half because of political differences in the country after it approached the lender for a $10-billion programme.
The government "expressed its willingness to progress towards reaching an agreement on an appropriate recovery programme that could be supported by the institution and harness broad support from the international financial community", the Finance Ministry said on Monday.
The newly formed cabinet, led by Prime Minister Najib Mikati, "is fully conscious of the urgency of Lebanon’s social and economic situation and of the challenges lying ahead," the ministry said in an emailed statement.
"The government has repeated its commitment to resume discussions with the IMF as early as possible and formed the team in charge of negotiating with the fund."
The team is led by Deputy Prime Minister Saade Chami and includes Finance Minister Youssef El Khalil, Economy and Trade Minister Amin Salam, and Banque du Liban Governor Riad Salameh.
Lebanon defaulted on about $31bn of eurobonds in 2020 and is enduring its worst financial crisis in three decades. Its currency has lost more than 90 per cent of its value against the US dollar, leading to surging inflation, increased unemployment and poverty.
Inflation soared to an annual 123 per cent in July, while gross public debt increased an annual 5.4 per cent to $98.2bn at the end of May 2021, from the same month a year earlier.
“An IMF-supported programme is essential to put the country on a path towards recovery," Mr El Khalil said after being appointed as Finance Minister in September.
"A funding agreement will ensure that the recovery is associated with the implementation of necessary and long overdue reforms and will help restore confidence in our economy.”
Lebanon approached the IMF in May 2020 for a bailout package, but talks stalled because of systemic delays in forming a government and disagreements among the country's political factions on sharing of power.
"The government remains fully committed to engaging in a constructive, transparent and equitable debt restructuring process with all other stakeholders, and welcomes the interest of bondholders, including the 'Ad Hoc Lebanon Bondholder Group', to participate in this process," the Finance Ministry said.
"The government reiterates its commitment to a fair and comprehensive solution for all creditors and will engage, with the support of its financial and legal advisers, in good faith discussions with all its creditors as early as practicable," the ministry said.
Lebanon’s economic crisis ranks among the world’s top 10 crises – possibly even the top three – since the mid-19th century, the World Bank said in June.
The magnitude of the economic depression has "no clear turning point" on the horizon, given the "disastrous" and deliberate policy inaction, the Washington lender said.
Lebanon's economy fell to an estimated $33bn in 2020, from nearly $55bn in 2018. The economy shrank by 20.3 per cent last year, after a 6.7 per cent contraction the year before, according to the World Bank.
A report by the lender last year said the country was in a "deliberate depression" because of the political paralysis and a failure by policymakers to reach an agreement on a new government and the necessary reforms that could unlock $10bn of aid from the IMF and another $11bn from international donors.
COMPANY%20PROFILE
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Joker: Folie a Deux
Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson
Director: Todd Phillips
Rating: 2/5
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Company%20profile
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if you go
The flights
Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.
The hotel
Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.
The tour
Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
UAE currency: the story behind the money in your pockets
How will Gen Alpha invest?
Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.
“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.
Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.
He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.
Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”
SPECS
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