VOL. XLVII

No 08

23-February-2004

LEBANON

BANK RESULTS

Fate Of Lebanese Banks Remains Tied To Government Debt Exposure

The fate of the Lebanese banking sector continues to be tied to its large exposure to sovereign debt a problem with which the current government seems to be fighting a losing battle. Holdings of government securities represent more than one third of the banking systems total assets, according to a June 2003 Banking System Outlook report by ratings agency Moodys. This situation...