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Significance
Salameh, along with his brother Raja, is under investigation in Lebanon and Europe for alleged financial irregularities following Lebanon’s 2019 economic collapse. The economy contracted in 2021 for a third consecutive year, inflation is above 200% year-on-year, the currency has fallen in value by over 90% since 2019 and the financial sector is practically bankrupt.
Impacts
Revelations in a court case against Riad Salameh could result in widespread protests calling for the overthrow of the political elite.
A protracted process of government formation would temporarily protect Salameh from prosecution.
If the IMF’s conditions are not fully met, it may provide a lower level of support than the promised USD3bn.
Keywords:
Lebanon,
ME/NAF,
France,
IMF-World Bank,
Luxembourg,
Switzerland,
Europe,
economy,
international relations,
politics,
social,
banking,
debt,
finance,
government,
talks,
bonds,
capital flows,
exchange rate,
growth,
poverty,
corruption,
crime,
judicial,
Banks
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2022
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