Lebanon—Weathering the Perfect Storms

Author/Editor:

Axel Schimmelpfennig ; E. H. Gardner

Publication Date:

January 1, 2008

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper reviews Lebanon's ability to manage financial pressures following severe shocks despite its large public debt overhang and significant external vulnerabilities. Based on interviews with market participants in Beirut and London, the paper concludes that Lebanon's ability to weather what appear to be "perfect storms" derives from three characteristics: a perceived implicit guarantee from donors; Lebanon's track record of having never defaulted on external debt or deposits; and the unique market structure for Lebanese debt which is dominated by local banks and "dedicated" investors and depositors.

Series:

Working Paper No. 08/17

Subject:

English

Publication Date:

January 1, 2008

ISBN/ISSN:

9781451868791/1018-5941

Stock No:

WPIEA2008017

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

38

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