Lebanon’s financial adviser Lazard will see if a government financial rescue plan can be adjusted to reach a compromise workable for the International Monetary Fund, two sources said on Friday, after the plan hit resistance from politicians, banks and the central bank.
Prime Minister Hassan Diab’s government had approved the plan, which would lead to losses of 241 trillion Lebanese pounds in the financial system, or $68.9 billion at the exchange rate applied by the plan, as the basis for talks with the IMF.
The IMF said the losses appeared to be about the right order of magnitude.
But a parliamentary fact-finding committee, backed by all Lebanon’s main parties, objected to the approach taken in the plan. Applying different assumptions, it came up with losses between a quarter and half that amount.
Lazard declined to comment.
Lebanon’s legal adviser, Cleary Gottlieb Steen & Hamilton LLP, is also visiting the country, the sources said.
The IMF warned Lebanon on Monday that attempts to lower losses from the financial crisis could only delay recovery.