Lebanese Financial Consultant Resigns over ‘Lack of Will’ to Reform

Henri Chaoul, a financial expert brought in to advise the Lebanese government in negotiations with the International Monetary Fund over ways to heal a deeply damaged economy, has quit. “I have come to the realization that there is no genuine will to implement either reforms or a restructuring of the banking sector, including the Central Bank,” Chaoul, cofounder of a financial advisory firm, said in a resignation statement. He was one of several authors of a January paper produced for the Carnegie Middle East Center saying they “strongly recommend that the Lebanese government commences with a comprehensive restructuring effort.” On resigning, he accused politicians and others of preferring a “populist agenda” and “opting to dismiss the magnitude” of the crisis. In May, the government of Prime Minister Hassan Diab agreed to hold talks with the IMF over proposed loans to reduce what has been described as the world’s largest foreign debt per GDP. A resulting drop in the standard of living led to massive anti-government demonstrations that last year brought down one government due to alleged corruption and ineptitude, and now threaten another, with protesters saying that only a government of technocrats and an end to the country’s decades-long system of sectarian rule can bring an end to the crisis.