“We can’t take it anymore”: As Lebanon economy skids, jobs in firing line (Reuters)

https://www.reuters.com/article/us-lebanon-protests-economy/we-cant-take-it-anymore-as-lebanon-economy-skids-jobs-in-firing-line-idUSKBN1XR0I0

Above is the link to the article in question (a 2 min read).

The picture above shows the Bank of Beirut.

Bambi is now thinking of her dearest cousin and her spouse who work there.

Bambi is also thinking of all her other relatives and friends, also bankers elsewhere.

Sadly, “S&P Global Ratings said on Friday that it lowered Lebanon’s long-term and short-term foreign and local currency sovereign credit ratings to ‘CCC/C’ from ‘B-/B’, citing rising financial and monetary risks”:

https://www.reuters.com/article/us-lebanon-ratings-s-p/sp-downgrades-lebanons-credit-rating-amidst-ongoing-protests-idUSKBN1XP2DP

If Bambi understands well, “a sovereign credit rating” refers to the credit rating of a “sovereign” entity (national governments). It is an indicator of the risk level of the investing context of this sovereign jurisdiction’s debt. Investors usually use such indicators before deciding to invest in a jurisdiction. Obviously, this indicator also takes into account political risk.

Keeping this in mind, it seems that three top Lebanese banks (Bank Audi, Blom Bank, & Bankmed) were downgraded by S&P Global Ratings, as reported by both Reuters (please see above) and Bloomberg (https://www.bloomberg.com/news/articles/2019-11-14/banks-on-the-frontline-of-lebanon-s-crisis-get-downgraded-by-s-p).

Bambi hopes that this VERY dark financial cloud will be managed as wisely as possible.

Clearly, tough management decisions will have to be taken by businesses (small or large), especially but not only by banks, as well as maybe by hospitals, other organizations, and/or by citizens at large, in the days, weeks, or even years ahead.

By the way, in the picture above, the sign in Arabic on the wall reads as: “The return of the stolen money“.

Bambi is unsure if those public funds have been stolen in the true sense or just very badly (i.e., criminally) mismanaged by politicians… or both? In either case, the consequence on citizens is tragic.

One thing is also sure: The country’s financial situation seems to remain a total mess.

At the time being, whether for geopolitical reasons or pure incompetence, there seems to be an incapacity of the government (or what is left of it?) to solve this deep financial crisis.

“Bon courage” to all the citizens of Lebanon! Hang on, please.