The Lebanese state is getting rid of its debts, by setting the biggest trap for depositors.
In the year 2021, the Lebanese public debt exceeded $95 billion, to reach the threshold of $96 billion, during the first month of 2021. The total public debt has increased by about $3.94 billion, compared to the level it was in January of the year 2020, which amounted to $92 billion. The public debt is distributed between 62.24% in national currency and 37.75% in foreign currencies.
Economists agree that the problem is not the number of public debt, but rather its ratio to the gross domestic product. According to the latest figures published by the Ministry of Finance, which set the total output at 55 billion US dollars, the ratio of public debt to GDP exceeded 170%, but this year with A GDP that will not exceed US$18.7 billion, according to IMF estimates.
The public debt-to-GDP ratio will rise to 513%, but this ratio, in light of the deterioration of the Lebanese currency against the dollar, becomes theoretical and subject to change from hour to hour. Today, with a dollar equivalent to 17,000 Lebanese pounds, the actual ratio of public debt to GDP expected by the International Monetary Fund is 53.47%.
I count the numbers above:
On the book: The official exchange rate of the dollar, which is 1515, and the base price of the Eurobond when it is offered for sale. Actual:
The actual dollar exchange rate today is 17,000 liras, and the average rate for today’s Eurobonds is 13 cents per dollar.
Taking into account that the public debt is subject to further decline as a result of the deterioration of the exchange rate of the lira and the loss of the value of Eurobonds.