A policy statement by Lebanon's new government calls for interest rate cuts and bank recapitalization in a rescue plan that includes "painful steps" to address a financial crisis, according to a draft seen by Reuters on Sunday.
The policy statement, on which the new government will seek a confidence vote in parliament, may still be amended. It was agreed on Saturday by a cabinet committee that will meet again on Monday to give it final approval.
The government, formed on Jan. 21 after the previous one was toppled by protests in October, warned Lebanese in the policy statement that it must quickly take "painful" steps to avoid "total collapse".
"It is not possible for any rescue plan to succeed if we do not reduce interest rates on loans and deposits in order to revitalise the economy and lower the cost of debt," said the statement.