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Lebanese bank losses to reach 200% of GDP
- masnao 6y agoI have absolutely no understanding of what this article talks about. I've read it twice, and it seems the banks will devalue the local currency, and sell off foreign assets as they start to become a higher percentage of their holdings because of the devaluation of the local assets. but for what purpose?!
- gus_massa 6y agoReading https://en.wikipedia.org/wiki/Banque_du_Liban https://en.wikipedia.org/wiki/Banque_du_Liban it is not a common bank, but the main official bank of Lebanon. The bank probably loan to the government a lot of money [1] and the government can't pay back, so they have to make a huge devaluation. [Hi from Argentina! We are last in that list.] [1] something like the trillion dollar coin https://en.wikipedia.org/wiki/Trillion-dollar_coin https://en.wikipedia.org/wiki/Trillion-dollar_coin
- anonu 6y agoLebanon has had a rough time this past year. The global pandemic is accelerating a dire financial situation that was created by 3 decades of corruption and petty sectarianism. Lebanon has a long history (millennia) of rising from the ashes. So whatever happens will happen... Hopefully the lessons from this crisis are taken to heart on the next go around