Lebanon Asks IMF for Help in Restructuring Debt / Lebanon's Financial Dilemma

Iron Maiden

Paragon of Bacon
Orange Room Supporter
Lebanese banks have officially abandoned IFRS9 reporting!

As of January 1, 2020, Lebanese banks are in imminent international default, Stage 3 of IFRS9.

In order to avoid this classification, they lobbied the Central Bank of Lebanon (Banque du Liban) to scrap IFRS9 reporting.

This is the equivalent of switching from a doctor to an astrologist when the doctor diagnoses you with a severe illness.

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Mrsrx

Not an expert!
Staff member
Lebanese banks have officially abandoned IFRS9 reporting!

As of January 1, 2020, Lebanese banks are in imminent international default, Stage 3 of IFRS9.

In order to avoid this classification, they lobbied the Central Bank of Lebanon (Banque du Liban) to scrap IFRS9 reporting.

This is the equivalent of switching from a doctor to an astrologist when the doctor diagnoses you with a severe illness.

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IFRS are standards in accounting to ensure that everyone is following the same rules when they report their accounts to the market. A shareholder of a company is a partial owner even if they own 1 stock meaning they are entitled to see the accounts.
General rule is if you are a public company you have to report and make your accounts public and the only way to show that is IFRS9 so if a shareholder or a potential investor wants to read it they understand exactly where you are and benchmark you compared to others as everyone is following the same rules.
IFRS9 i think is general account (liabilities, equities, cashflow...)
IFRS15 revenue recognition (what are you allowed to count as revenue) (equivalent to us ASC606)

So by scrapping it that they are basically saying we will announce numbers but you have no idea how we got them and if they are doctored or not....and audits cannot tell them you made a mistake in your accounts as there are no accounting rules anymore

Usually stock markets make it mandatory to have these to be listed but it seems that the beirut stock exchange does not care much ....a company in the NYSE doing this will be kickedout in the same day

Most high profile case of doctored books and fraud if you are interested is Enron and a good documentary is "the smartest guys in the room" that can explain this....following this scandal many rules were set like SOX and later on ASC and IFRS (USA and international standards)
 

Patriot

Well-Known Member
Orange Room Supporter
Lebanon's banking association calls for paying March Eurobond on time


1 MIN READ



FILE PHOTO: Lebanese police stand outside the entrance of the Association of Banks in downtown Beirut, Lebanon November 1, 2019. REUTERS/Mohamed Azakir/File Photo
BEIRUT (Reuters) - Lebanon’s banking association said on Wednesday it was necessary to repay a $1.2 billion Eurobond maturing in March on time to protect depositors and preserve the country’s place in international financial markets.
The association said in a statement that debt restructuring requires time and the assistance of international institutions. It said very little time remains before the maturity on March 9, which does not allow for preparation and “competent handling.”

 

SoFP1

The Chosen One
Orange Room Supporter
Lebanon's banking association calls for paying March Eurobond on time


1 MIN READ



FILE PHOTO: Lebanese police stand outside the entrance of the Association of Banks in downtown Beirut, Lebanon November 1, 2019. REUTERS/Mohamed Azakir/File Photo
BEIRUT (Reuters) - Lebanon’s banking association said on Wednesday it was necessary to repay a $1.2 billion Eurobond maturing in March on time to protect depositors and preserve the country’s place in international financial markets.
The association said in a statement that debt restructuring requires time and the assistance of international institutions. It said very little time remains before the maturity on March 9, which does not allow for preparation and “competent handling.”

Bloody crooks.
 

cedarheart

Legendary Member
Our politicians spread the rumours early about the default driving the bond prices down, they then entered the market via foreign vehicles and bought the bonds at deep discount, they now are pushing for payment. A sweet profit of 40% or more in just few weeks from the people's money...
 
Our politicians spread the rumours early about the default driving the bond prices down, they then entered the market via foreign vehicles and bought the bonds at deep discount, they now are pushing for payment. A sweet profit of 40% or more in just few weeks from the people's money...

why the central bank did not buy the bonds? it doesn't have enough money ?
 
It is a combined scheme, where the local banks buy the low priced bonds and BDL pushes the gov to approve paying them. In return, Mr. R.S. gets a hefty commission in his Swiss bank account.

The central bank should buy the bond at these low prices.

Anyway if your scenario is true; it counts to an international fraud! Do the lebanese crooks have the guts to do it?
 

Zilzel

Legendary Member
Orange Room Supporter
how much will the lira devaluate to?

i have a small amount of money in lira should i convert it now to usd at the serrafin abel ma tofrot w o5sar most of their value?

Better yet, gives them all to me. Will give you $2 for your troubles.
 

TayyarBeino

Legendary Member



19:58

مصادر حكومية لـ"رويترز": لبنان طلب رسميا من صندوق النقد الدولي أن يرسل وفدا فنيا للمساعدة في وضع خطة مالية واقتصادية ونقدية شاملة لإنقاذه من الأزمة
 

TayyarBeino

Legendary Member
المنار: اجتماع سيعقد بين بري وعون ودياب وزني وسلامة وصفير لبحث ملف اليوروبوند


مصادر حكومية لـ"رويترز": وفد صندوق النقد الدولي لمساعدة لبنان من المتوقع أن يصل في الأيام القليلة القادمة


نشر بتاريخ Feb 12 2020 | 20:32 PM​
 

GeorgesT

New Member
Eurobonds is one thing, but this thread is about the IMF.
Make no mistake, if we let the IMF in, it is the end of Lebanon.
They have a fat ZERO record of success in their entire history.
Well actually their success is in keeping countries indebted and selling off everything the people owns, to foreign -and local- elites.
No wonder so many politicians are discussing this.
Stuck in endless poverty and misery, we will be.
 

VH Redux

Member
Eurobonds is one thing, but this thread is about the IMF.
Make no mistake, if we let the IMF in, it is the end of Lebanon.
They have a fat ZERO record of success in their entire history.
Well actually their success is in keeping countries indebted and selling off everything the people owns, to foreign -and local- elites.
No wonder so many politicians are discussing this.
Stuck in endless poverty and misery, we will be.
is there an alternative?
 
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