Cover IMF Working Papers
Lebanon—Weathering the Perfect Storms
Author: Mr. Axel Schimmelpfennig and Mr. E. H. Gardner
Series:
IMF Working Papers
Volume/Issue:
Volume 2008: Issue 017
Language:
English
Publication Date:
01 Jan 2008
DOI:
https://doi.org/10.5089/9781451868791.001
ISBN:
9781451868791
ISSN:
1018-5941
Pages:
38
Keywords:
WP; Lebanon; debt; deposit; investor
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund