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TOP STORIESUS sues Lebanese firms for 'laundering Hezbollah funds'The US federal government on Thursday escalated its campaign to stanch the flow of what it says is dirty money to the Shiite militant group Hezbollah. Prosecutors filed a civil suit aimed at financially punishing American and Lebanese businesses that the government charges were behind a Hezbollah-controlled global network that laundered huge sums in South American cocaine proceeds. read more
Good News First; Lebanon will have sustained growth in Q4 but cost of living will be at an all time high threatening a sustained stagflation into 2012There is deep concern among financial circles that rating agencies may downgrade Lebanon in the near future if the Cabinet’s efforts to pass the budget bill hit an impasse. Finance Minister Mohammed Safadi, who is aware that this initial draft is unlikely to receive support without some compromises, has made clear that he is willing to drop his proposal to raise the Value Added Tax from 10 percent to 12 percent, but only on the condition that the Finance Ministry does not allocate additional funds for social and medical benefits.“I don’t mind taking out new taxes or annulling tax hikes [of the VAT], but this should be coupled with reducing equivalent expenditures,” the minister said earlier.The minister said he feared that the public debt could rise to $60 billion at the end of 2012 if measures were not adopted soon to cut spending and increase revenues. Related
LEBANON RISK OUTLOOK
The New
Risk Profile of the Region - 1/4 -Lebanon to
refinance USD 2bln in Eurobonds - Are you ready for an economy that has high inflation and high unemployment at the same time? Well, welcome to "Stagflation 2011." Stagflation exists when inflation and unemployment are both at high levels at the same time. Of course we all know about the high unemployment situation already. Unemployment rate has been hovering around 10 percent all year so far. But now thanks to rapidly rising food prices and the exploding price of oil, rampant inflation is being added to the equation. Read more >>
BNP Paribas SA (BNP), Societe Generale (GLE) SA and Groupe Credit Agricole had their credit ratings cut by Moody’s Investors Service,
BNP Paribas SA (BNP),
Societe Generale (GLE) SA and Groupe Credit
Agricole had their credit ratings cut by Moody’s
Investors Service, which cited funding
constraints and deteriorating economic Related
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