A draft government plan showed that Lebanon needs external financing from 10 billion to 15 billion dollars over the next five years to help it withstand its financial crisis.
Reuters reported that the draft plan, which the cabinet is discussing, is dated April 6 and is the most comprehensive plan to address the crisis so far.
The plan, drafted by Lebanon's financial advisor Lazard, does not mention explicitly that the country will turn to the International Monetary Fund, a move that requires broad political support. But it points to investors expecting Beirut to seek support from the IMF, which would allow more financing.
While monitoring $83.2 billion in economic losses, the plan showed that "a full bailout package for the financial sector is not an option."
The plan includes details of restructuring the central bank and commercial banks to include an extraordinary transient contribution from major depositors, and outlines a special fund to compensate depositors' losses resulting from the restructuring.
Lebanese Prime Minister Hassan Diab stressed that the assets of 90 percent of the depositors are preserved.
Source (Arab newspaper-London, Edited)
