How will the regional economy fare as dark clouds congregate over the Levant?
Thus far, Lebanon seems to have remained unscathed from the economic crisis gripping the world. Citing regional investment bank EFG Hermes, a report published by Lebanon’s Byblos bank states, “Lebanon is benefiting from additional global capital inflows as non-resident Lebanese seek a safe haven due to rising concerns about global banking institutions.” The report adds that Lebanese banks have liquid balance sheets with some of the lowest loan to deposit ratios in the region. The Lebanese Central Bank’s prohibition of investing in structured products has also protected local banks from the credit crisis debacle. According to the same report, Lebanon is well placed to weather the financial crisis. EFG Hermes has concluded that the country will maintain its growth level at 9 percent for 2009. But economist Marwan Iskandar told IPS in an interview that Lebanon has been nonetheless indirectly exposed to the crisis. “We live in an interconnected world and the high liquidity levels experienc
