Lebanon - Report on Interim Staff Visit (Electronic book text)

1. Lebanon has started to reap the benefits of prudent macroeconomic policies. The two key objectives of EPCA-reducing the government debt-to-GDP ratio and strengthening international reserves-were clearly met, buoying confidence and economic activity despite the difficult international environment and recent delays in forming a government. The debt-to-GDP ratio has dropped 27 percentage points since end-2006, and at $25 billion, international reserves have doubled over the past 18 months.