Lessons for Lebanon from its struggling neighbours

IT IS PROBABLY the first time in years that Lebanon has wanted to turn down a loan. With the economy in free fall the country’s new government, seated in January after months of horse-trading, has reluctantly turned to the IMF for help. They held a first round of talks on February 20th. For now Lebanon seeks only technical advice on managing a public debt that exceeds 150% of GDP. Politicians are keen to resist money from the fund, because it would come with strings attached. But it may be necessary. Economists fret that Lebanon could run out of hard currency by the end of the year, leaving it unable to pay for needed imports.