Salameh: Lebanon Isn’t on Verge of Bankruptcy

Lebanon’s Central Bank Governor Riad Salameh assured on Tuesday that Lebanon is not on the verge of bankruptcy, as the government prepares to impose austerity measures to combat the bulging fiscal deficit, LBCI TV station reported.

“According to available data, it does not indicate that Lebanon is on the verge of bankruptcy,” Salameh said, “I can confirm that in terms of the assets of the Banque du Liban and in terms of the assets of the banking sector," he told the station.

Salemeh added saying that “35% of Lebanese public debt is in the central bank.”

Lebanon’s government plans on implementing strict austerity measures to reduce a ballooning budget deficit and massive national debt.

The austerity measures to be adopted in the new budget could lead to wage cuts for state employees amid the economic crisis. The budget is still in the works and is expected to be sent to parliament for approval in the coming weeks.

Discussions by the government of what it called "painful" and "unpopular" measures to be taken to try to cut the budget deficit and slow the growth of the national debt, which stands at more than $85 billion, or more than 150% of the gross domestic product, making it among the highest in the world.