Lebanon might soon see the long-anticipated introduction of a debt restructuring plan as both a new president and prime minister prioritize economic reform. Years of rampant spending catapulted the nation into a downturn, locking depositors out and shutting banks until political will shifted toward securing an IMF loan.
The plan centers on distributing financial losses more equitably among the state, banks, and depositors. A draft law, destined for cabinet review, could be pivotal in determining the fate of Lebanon's financial recovery. Critical elements such as loss clawbacks and asset-backed bonds, potentially involving the nation's gold reserves, remain subjects of intense debate.
Tensions further cloud the recovery landscape as experts highlight potential issues with the plan's align