The Financial Crisis And The Course Of Bankruptcy For The Lebanese Economy

Abstract

The crisis in Lebanon is a deep-rooted crisis and is not a spur-of-the-moment. The nature of Lebanon's fragile economy, which depends on two main sectors, namely the banking sector and the tourism sector, and thus the lack of opportunity for the real productive sectors and the decline in primary resources, in addition to the state of political and security instability and wars for more than three decades accumulated from the economic situation The turbulent and huge volume of external indebtedness. A brief example of this is the increase in the volume of external debt from (3.8) billion dollars in 1993 to nearly (93) billion dollars in 2020 as a necessary requirement for a "rescue package" to lift Lebanon's economy from the risk of bankruptcy. In our research paper, we will address this crisis through Two main topics. The first topic deals with a brief overview of the reality of the Lebanese economy, while the second topic focuses on the indebtedness path of the Lebanese economy, the reasons and repercussions for declaring bankruptcy of the Lebanese economy, with proposals presented at the end, represented by a set of the most prominent conclusions and recommendations. Various Lebanese governments followed it by adopting the strategy of postponing crises and not confronting them with the issue Which exacerbated the size of the crisis until the bubble (the debt crisis) burst at the beginning of the year 2019 until the first quarter of the current year 2022.