It’s a familiar script. Lebanese politicians say they are “serious” about reducing the budget deficit - ready to make cuts, ready to make hard decisions. The country heard it last year in the run-up to the passage of the 2018 budget, when Prime Minister Saad Hariri ordered ministries to cut their budgets by 20 percent.
Economist Ghazi Wazni said that the new government has a last chance to introduce the much-needed reforms for Lebanon to recover from its economic crisis, warning of an inevitable collapse if corruption and squandering are not stopped.
Moody's Investors Service on Thursday changed the outlook to negative from stable on Lebanon's issuer ratings and affirmed the ratings at B3.