Build & reform

Main Challenges

• Adopt a unified exchange

rate regime

• Resolve the paralysis of

capital markets

• Build safeguards against collusion between BDL, the MoF, and Parliament

Measure 1.1.10

Streamline the issuance of new debt instruments and provide citizens with clear information about new debt needs and measures.

Measure 1.1.11

Help smooth out the debt burden through stronger activation of the secondary market. Publicly list all new debt instruments on the Beirut Stock Exchange (BSE) and/ or Electronic Trading Platform (ETP).

Measure 1.1.12

Complete good-faith negotiations with the IMF to unlock technical assistance and financial support, around a credible economic recovery plan, and carry out all structural reforms that relate to the improvement of the fiscal performance of Lebanon under existing commitments.

POLICY PRIORITY 1.2

FISCAL POLICY ALIGNMENT WITH MONETARY STABILITY PRESERVATION AND A SOUND EXCHANGE RATE REGIME

Proposed Measures

Measure 1.2.1

Unify and stabilize the exchange rate and incentivize initiatives that would increase foreign direct investment.

Measure 1.2.2

Mandate independent, rigorous, and transparent assessment of all macroeconomic indicators and disclose them to the public in a timely manner.

Measure 1.2.3

Reinforce the control environment of BDL in a manner that will allow it to have a preamptive and independent role in risk mitigation.

Measure 1.2.4

Adopt transparent and timely measures in the disclosure of decisions and rationales used by BDL for their monetary policy, interest rate decisions, and inflation targets.

Measure 1.2.5

Streamline the procedure for interactions between BDL and fiscal policy-makers to make the decision-making processes and outcomes more transparent.

Measure 1.2.5

Align fiscal policy with the stated objective of deepening capital markets in Lebanon through the incentivization of capital market operations.

Measure 1.2.6

Encourage public listing of family-owned conglomerates and large businesses on the BSE.

Measure 1.2.7

Incentivize the floatation of young companies and startups, as well as small and medium enterprises.

Measure 1.2.8

Revise the mandate and structure of the Capital Markets Authority in Lebanon.

Measure 1.2.9

Increase provision of technical support and fiscal incentives for the different classes of companies seeking to be listed.

Measure 1.2.10

Mandate for all companies benefiting from public funds to be listed on the BSE with a 51 percent float.

Measure 1.2.11

Legislate and incentivize companies to facilitate trading of corporate debt contracts to allow for foreign currency investments to encourage exports.

Measure 1.2.12

Prioritize discussions with the IMF and the banking sector to advance in the muchneeded recapitalization of the latter through a strengthening of their balance sheets, equity injections, and optional mergers.

Measure 1.2.13

Remove incentives for smuggling and illegal migration of labor.