Aid Will Help Lebanon

Ratings agency Moody’s says that the $11 billion of aid secured by Lebanon in early April will have a positive impact on the country’s economy, MEED reported. The aid will be spent over the next five years to overhaul the country’s ailing infrastructure and underpin economic growth. Moody’s says the aid package is credit positive because it supports the resumption of public investment, while incentivizing fiscal reform implementation as a condition for disbursements. Lebanon received more than $11 billion of pledges of aid at a conference in Paris on April 6. The pledges include $10.2 billion in loans and $860 million in grants. Moody’s forecasts growth to average 3% in 2018-21, compared with an average of 1.6% for 2013-16. About 50 countries participated with organizations and private investors at the conference, which included officials from the World Bank and the International Monetary Fund. The Paris conference was aimed at giving Lebanon a boost as it prepares for its first general elections in almost a decade in May.