Lebanon—Weathering the Perfect Storms

January 1, 2008

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Format: Chicago

Axel Schimmelpfennig, and E. H. Gardner Lebanon—Weathering the Perfect Storms, (USA: International Monetary Fund, 2008) accessed September 18, 2024

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.

Subject: Banking, Commercial banks, Debt default, Financial crises, Public debt

Keywords: Debt, Deposit, Investor, Lebanon, WP

Publication Details

Pages:

38
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2008/017
Stock No:

WPIEA2008017
ISBN:

9781451868791
ISSN:

1018-5941

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