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On the Way Out of Lebanon's Triple Crisis

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  • Diwan, Ishac

Abstract

Six years into Lebanon's crisis, national income has declined to half its potential, necessitating urgent reforms to restore economic growth. The situation is complicated by the interconnected issues of banking sector restructuring, public debt, and currency stability (Diwan and Chaoul, 2023). The current Government is addressing these challenges head on with recent legislative actions, including a law to lift bank secrecy and a banking restructuring law nearing completion (IMF, 2025). A third piece, the "Gap Law," aims to redistribute over $70 billion in losses among creditors and is expected to face significant debate and opposition. This publication highlights the banking sector's restructuring within the context of Lebanon’s broader crises. It outlines key policy dilemmas and the components of the restructuring puzzle that are coming together. The challenge is to finalise each part and integrate them into a viable overall financing plan.

Suggested Citation

  • Diwan, Ishac, 2025. "On the Way Out of Lebanon's Triple Crisis," FDL Policy Notes 2518, CEPREMAP.
    • Handle: RePEc:cpm:notfdl:2518
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    File URL: http://findevlab.org/wp-content/uploads/2025/12/FDL_Policy-Note-30_On-the-Way-Out-of-Lebanons-Triple-Crisis_FINAL.pdf
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    as
    1. Ishac Diwan & Henri Chaoul, 2023. "Lebanon at Risk: The Uncertain Road from A Debt Overhang to A New Growth Path," Working Papers 1645, Economic Research Forum, revised 20 Aug 2023.
    2. Diwan, Ishac & Chaoul, Henri, 2023. "Lebanon At Risk: The Uncertain Road From A Debt Overhang To A New Growth Path," FDL Policy Notes 2307, CEPREMAP.
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