ALBAWABA - No, Lebanon is not bankrupt; well, the Governor of the Central Bank of Lebanon Raid Salameh says Banque du Liban is most certainly not bankrupt as stated a day earlier by the Deputy Prime Minister Saadeh al-Shami but it is merely facing 'technical' difficulties.
No. Lebanon is not bankrupt. In dire shape, to be sure, but not bankrupt. https://t.co/rH9Dakf4GK
— Ungovernable (@UngovernableChi) April 4, 2022
So who are we to believe? Salameh is reported as flatly denying the Central Bank is bankrupt adding its losses are "under processing" whatever that means! But he clarifies in the next paragraph and according to Anadolu news that:
No one sane can dispute Lebanon is in a grave financial state, but neither would anyone sane falsely insist it's bankrupt when it's not.
— Ungovernable (@UngovernableChi) April 4, 2022
I can't give you the wisdom to differentiate between a lack of liquidity and an official declaration of insolvency, so I'm #done here. #خلص
"The governor of the Banque du Liban is interested in clarifying that what is being circulated about the bankruptcy of the Central Bank is incorrect," Salameh added and continuing:
I can't read for you, but here's an important bit. It's not just the governor of the central bank (what would he know about the central bank! ?), it's the deputy prime minister who was being quoted *and* the ?prime minister? now denying Lebanon is bankrupt. IT'S NOT BANKRUPT. pic.twitter.com/uqKzq2kkd1
— Ungovernable (@UngovernableChi) April 4, 2022
"Despite the losses that afflicted the financial sector in Lebanon, which are under treatment in the recovery plan that is currently being prepared by the Lebanese government in cooperation with the International Monetary Fund, the Banque du Liban is still exercising its role and will continue to do so," he added.
#Lebanon is *not* bankrupt: it has the highest amount of bounty money per capita in the world. All it takes for the country to get into good financial standing, is judicious releases from the Strategic Fugitive Reserve. @Rewards4Justice
— Samawal Foundations (@Samawal_LLC) April 5, 2022
So was al-Shami's comments wrong when he also, and pointedly said that "the state has gone bankrupt as did the Banque du Liban"? Well yes and no. Apparently the deputy PM was talking about something else altogether. He was talking about lack of liquidity facing the Central Bank and not its inability to pay long-term debts and being in a state of insolvency.
It's not true. A deputy minister poorly phrased an answer during a TV interview, but the central bank and the deputy minister himself deny that Lebanon is bankrupt. https://t.co/vdxuYGWALO
— Ungovernable (@UngovernableChi) April 4, 2022
Still confused? So are many people. But this is explained by one of the netizens on social: Omar Tamo points out
I really do not get the fuss around Lebanon's deputy prime minister saying that Lebanon is bankrupt.
— Omar Tamo (@OmarTamo19) April 4, 2022
Lebanon officially defaulted on its foreign currency debt (Eurobonds) in March 2020, and we have been talking about the $60-70 billion losses for more than two years.
But then he clarifies further. Tamo explains this way with a jab at Prime Minister Miqati:
Billionaire PM Najib Mikati said that his deputy meant that Lebanon is facing a liquidity issue (unable to meet short term payments) and not a solvency issue (inability to meet long term liabilities, hence bankrupt).
— Omar Tamo (@OmarTamo19) April 4, 2022
Lebanon is only low on $70 billion, will surely raise soon ?
