Juggling debt wisely

by Faysal Badran April 1, 2005

written by Faysal Badran April 1, 2005

The key to Lebanon’s short term economic future rests with its ability to get on a trajectory of reform and debt management. With the real economy bleeding and GDP expected to shrink this year, the importance of Lebanon’s debt management takes on a primary role, especially since gross public sector debt amounted to the equivalent of 170% of GDP in 2004, a more than three-fold increase over the past decade. Net public debt amounted to the equivalent of just over 160% of GDP in 2004 or around 120% netting out central bank foreign exchange reserves. This represents close to double that of Turkey, and is among the highest of rated credits. Understandably servicing this debt represents a huge drain on the public coffers, and will be a main obstacle to growth. A bit of history Lebanon has a track record of always meeting its obligations, even in difficult circumstances. The

2005 Debt lebanon

Faysal Badran

Faysal Badran is the head of NCB Capital, a Saudi-based wealth and asset management firm. He oversees the company’s regional and international equities, global fixed income, money market, and alternative investments. Before joining NCB Capital, Badran spent five years at its parent company, National Commercial Bank (NCB), working in the office of the chief financial officer and in the international sector division. He also contributed as a writer for Executive magazine in Lebanon. Badran holds a bachelor’s degree in economics from DePauw University in the U.S.

Juggling debt wisely

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