Safadi: IMF Warns Lebanon of Budget Deficit Overshoot
Caretaker Finance Minister Mohammed Safadi revealed on Saturday that he had received a message from the International Monetary Fund warning of the risks of an additional increase in Lebanon's budget deficit beyond 6 trillion Lebanese Pounds, the As-Safir daily quoted him as saying.
“Although the message did not request any action on Lebanon's part,” said Safadi but he explained that it held a high-tone warning that any failure to control the spending and deficit would lead Lebanon to the “abyss.”
He stressed that the ministry of finance is committed not to overstep the current deficit, which would maintain Lebanon’s reputation abroad enhancing its credibility towards the donor countries.
According to the Finance Ministry, the deficit reached LL3.952 trillion ($2.63 billion) through August of this year compared to LL2.245 trillion in the same period of last year.
Safadi did not negate that the financial situation is not doing well, and that any failure to comply with a ceiling for deficit and expenditure will lead the country to multiple risks.
He added that the ministry is keen not to let the deficit exceed the limit reached in 2012, and said: “We will not allow the deficit to grow more than that. If it did that would mean that we are broke.”
On the other hand, Safadi said that the Ministry of Finance cut down the budget of Electricite Du Liban (EDL) to 1,500 billion in the context of reducing its deficit, and to stimulate the enterprise on the collection of bills and achieving sustainable revenues.
