Nahhas Warns Economy Can't Bear Further Political Deterioration

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Caretaker Economy Minister Nicolas Nahhas warned on Thursday that the political crisis in the country will have an impact on the economy if it worsened and the country entered vacuum in state posts.

“The red line is the hypothesis that the division would increase among the Lebanese,” Nahhas said in comments to Voice of Lebanon radio (93.3).

He called on officials to assume their duties to resolve the political crisis and “allow President Michel Suleiman to find the appropriate solutions without setting any conditions.”

Nahhas expressed hope that constitutional deadlines would be respected to “prevent any repercussions on the country's economy.”

He stressed that “change could only happen through diplomatic channels.”

However, the caretaker Minister expressed relief that the economic "indicators show the possibility of rebound, where overall growth amounted to 2 percent.”

Last week, Fitch, the rating agency, downgraded Lebanon's long-term foreign and local currency issuer default rating (IDRs) to negative, citing political uncertainties, spill-overs from the Syrian conflict on economic performance and slow growth prospects.

Ratings agency Standard and Poor's lowered in November of the ratings on Lebanon to 'B-' over the “deteriorating fundamentals and rising political risks, adding that the outlook remains negative.”

S&P also lowered to 'B-' from 'B' its long-term counterparty credit ratings on three Lebanese banks, Bank Audi SAL–Audi Saradar Group, BankMed s.a.l., and Blom Bank sal.

The outlooks on all three banks remain negative, the agency said.

Comments 13
Thumb ice-man 26 December 2013, 10:28

Saudi... Wahabi.... M14.... Harriri.... Geagea.... IMF..... Financial Austerity..... Qatar.... EDL.... Abyss.... @mckinl.... resistance.... government..... victory!

Thumb mckinl 26 December 2013, 10:31

Good morning ice-man ...

Thumb ice-man 26 December 2013, 11:14

Mornin' @mckinl:) What's your take (as a member of HA) on Obama and Michelle separating? Is this good for the resistance?

Thumb mckinl 26 December 2013, 11:22

@ ice man

"What's your take (as a member of HA) on Obama and Michelle separating?"

Got a link?

Thumb ice-man 26 December 2013, 11:44

Thumb mckinl 26 December 2013, 11:52

@ ice-man

re: link on Obama-Michele breakup

not a credible source ...

Missing coolmec 26 December 2013, 11:45

where did you hear that the Obamas are separating?

Missing coolmec 26 December 2013, 11:50

Sorry ice man
just noticed the link

Missing coolmec 26 December 2013, 11:53

just read your link. I wonder how true is this. Time will tell

Missing coolmec 26 December 2013, 11:53

just read your link. I wonder how true is this. Time will tell

Thumb FrenchEagle 26 December 2013, 11:52

Super Man must save the world, sorry Nahhas must save lebanon, sorry Nahhas must save Ketteneh, Abou Adal and Fattal. They do not care about lebanese

Thumb -phoenix1 26 December 2013, 13:14

Mr. Nahas, personally I am not too cool about your cabinet, but all the same, I know when people speak words of wisdom, so people like me will give you full support for such statements, but honorable minister, do you really believe that the political mafia of both Ms will listen? Do they care? These people are super stinking sinfully rich, would a deteriorating economy worry them? I very much doubt it. If the bag of bread is raised a 1000%, to its it's a drop in the ocean, but to the average Lebanese person who is dying a thousand deaths per day trying to sustain his loved ones, be it here or outside in the Diaspora, such will be catastrophic to say the least. But then Sir, we the people are to blame, we still follow sheepishly those very ones sucking our blood.

Default-user-icon Gideon (Guest) 26 December 2013, 14:49

Uhhh truth to be told, It's more like Economy Can't Bear Nicolas Nahhas anymore.