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Article: Banking system is key to Beirut's survival.(LEBANON)
- Article from:
- MEED Middle East Economic Digest
- Article date:
- July 21, 2006
CopyrightCOPYRIGHT 2006 MEED Middle East Economic Digest. All Rights Reserved. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Beirut's economy was paying a heavy price in mid-July for the week-long assault by Israel. With much of its key infrastructure destroyed, ports and airports blockaded and thousands of residents displaced, economic activity was grinding to a virtual standstill. The Beirut Stock Exchange closed on 17July
"The key to whether the crisis turns into something much worse is the banking system and in particular the stability of the deposit base [of local banks]," says a London-based analyst. "If capital flight can be limited and the security situation restored in a short time, then financial difficulties can be avoided. But if there is a wholesale flight of capital, the ...