Counting the losses

Rafik Hariri was an inevitable figure in Lebanese politics and economics. The man was greatly responsible for driving Lebanon towards the 21st century and gave the country (admittedly via a hefty debt) a world-class infrastructure, including a major airport, a much improved road network and telecommunication system, and a pristine city center. But most importantly, Hariri was a heavyweight local leader of international stature and credibility. His death has had a significant impact on the country’s banking sector, which is inextricably linked to the country’s other sectors. Most of the large banks have substantial exposure to the tourism industry as well as Solidere and other businesses in the BCD. Taking a hit The drop in profitability and cash flow of businesses involved in tourism, including those operating in the BCD, such as hotels, restaurants and shops, will probably see a return to the 1998 to 2002 period, when cash flow