Lebanon's banking outlook has been upgraded by rating agency Moody's Investor Service to stable from negative due to an increase of political stability and a resurgence of economic growth.
"Our outlook for the Lebanese banking system is stable, reflecting progress in policy effectiveness after years of political paralysis and a pick-up in economic activity from low levels," Moody's said.
"Continuing deposit inflows and substantial liquidity buffers underpin the financial system's ability to finance the government and the economy."
The rating agency said it expects the economy to grow 3 per cent in 2018, higher than economic growth in 2016 and 2017 yet still below the 9 per cent average registered between 2007 to 2010.
The stability of Lebanon's banking system is underpinned by a steady inflow of deposits as well as the central bank's $41 billion in foreign assets, the rating agency said. Banks also have enough assets abroad to cover a third of total deposits.
Lebanese banks have traditionally kept interest rates on deposits high enabling it to attract billions of dollars from millions of Lebanese living abroad. That interest regime enabled the country to weather the 2008 financial crisis and service its public debt which is about 148 per cent of GDP, the ratio in the Middle East and the third-highest among all rated sovereigns.
Moody's rates three banks, Bank Audi, Blom Bank, and Byblos Bank, which together make up 35 per cent of total banking deposits. Last month Moody's cut those banks' long-term deposit ratings to B3 from B2, saying that that while a return to a fully-functioning political government was a positive move, it was too early to say whether proposed reforms would lift the country's finances.
____________________________________
Lebanon's economy to remain subdued in 2017 as upheaval in Syria takes its toll, IMF says
Moody's downgrades Lebanon amid weak growth forecast
_____________________________________
Lebanon swore in a new government in December following a two-year caretaker regime. After years of political bickering and crises the country's parliament is expected to pass its first budget since 2005 in the coming weeks. Several major tax reforms embedded in the plan and aim to tackle the country's deficit. The country is forecasting a fiscal deficit for this year of $5.2bn, or 8.7 per cent of GDP, down from a deficit of 9.5 per cent of GDP last year.
Still many headwinds for the country remain. Earlier this month, the International Monetary Fund said expects Lebanon's economic growth to be subdued in 2017, weighed down by rising public debt and regional turmoil that has led to a large inflow of Syrian refugees into the country.
The IMF expects Lebanon's economy to grow 2 per cent in 2017 and 2.5 per cent in 2018. That's slower than the 2.6 per cent and 3.4 per cent growth the fund expects for the Middle East, North Africa, Afghanistan and Pakistan for this year and next.
Among other challenges, Lebanon's economy has come under pressure in recent years from the presence of over 1 million refugees fleeing Syria's civil war.
"The country's weak infrastructure is exacerbated by a large influx of Syrian refugees, with one million registered as of December 2016," Moody's said.
"Large external and fiscal deficits are further challenges. Investor confidence is low following years of political paralysis and regional geopolitical paralysis and regional geopolitical uncertainty, and consumer confidence remains volatile reflecting political developments."
The specs
Engine: 3-litre twin-turbo V6
Power: 400hp
Torque: 475Nm
Transmission: 9-speed automatic
Price: From Dh215,900
On sale: Now
The biog
Name: Marie Byrne
Nationality: Irish
Favourite film: The Shawshank Redemption
Book: Seagull by Jonathan Livingston
Life lesson: A person is not old until regret takes the place of their dreams
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
Roger Federer's 2018 record
Australian Open Champion
Rotterdam Champion
Indian Wells Runner-up
Miami Second round
Stuttgart Champion
Halle Runner-up
Wimbledon Quarter-finals
Cincinnati Runner-up
US Open Fourth round
Shanghai Semi-finals
Basel Champion
Paris Masters Semi-finals
Small%20Things%20Like%20These
%3Cp%3EDirector%3A%20Tim%20Mielants%3Cbr%3ECast%3A%20Cillian%20Murphy%2C%20Emily%20Watson%2C%20Eileen%20Walsh%3Cbr%3ERating%3A%204%2F5%3C%2Fp%3E%0A
World record transfers
1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m
More about Middle East geopolitics
THE LIGHT
Director: Tom Tykwer
Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger
Rating: 3/5
ALRAWABI%20SCHOOL%20FOR%20GIRLS
%3Cp%3ECreator%3A%20Tima%20Shomali%3C%2Fp%3E%0A%3Cp%3EStarring%3A%C2%A0Tara%20Abboud%2C%C2%A0Kira%20Yaghnam%2C%20Tara%20Atalla%3C%2Fp%3E%0A%3Cp%3ERating%3A%204%2F5%3C%2Fp%3E%0A
Abu Dhabi GP Saturday schedule
12.30pm GP3 race (18 laps)
2pm Formula One final practice
5pm Formula One qualifying
6.40pm Formula 2 race (31 laps)
THE BIO: Martin Van Almsick
Hometown: Cologne, Germany
Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)
Favourite dessert: Umm Ali with dark camel milk chocolate flakes
Favourite hobby: Football
Breakfast routine: a tall glass of camel milk
Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
EMERGENCY PHONE NUMBERS
Estijaba – 8001717 – number to call to request coronavirus testing
Ministry of Health and Prevention – 80011111
Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre
Emirates airline – 600555555
Etihad Airways – 600555666
Ambulance – 998
Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries
MATCH INFO
Manchester City 0
Wolves 2 (Traore 80', 90 4')
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
Central%20Bank's%20push%20for%20a%20robust%20financial%20infrastructure
%3Cul%3E%0A%3Cli%3ECBDC%20real-value%20pilot%20held%20with%20three%20partner%20institutions%26nbsp%3B%3C%2Fli%3E%0A%3Cli%3EPreparing%20buy%20now%2C%20pay%20later%20regulations%26nbsp%3B%3C%2Fli%3E%0A%3Cli%3EPreparing%20for%20the%202023%20launch%20of%20the%20domestic%20card%20initiative%26nbsp%3B%3C%2Fli%3E%0A%3Cli%3EPhase%20one%20of%20the%20Financial%20Infrastructure%20Transformation%20(FiT)%20completed%3C%2Fli%3E%0A%3C%2Ful%3E%0A