On February 23, 2012, the Faculty of Business and Commercial Sciences at USEK organized a second conference entitled “The Lebanese Economy in 2012: New Challenges & New Perspectives”, given by H.E. Mr. Mohammad Al Safadi, Minister of Finance. The conference was followed by an open debate with students.

Following the welcome speech by Ms. Lea Yahchouchi, Prof. Nehme Azouri, Dean of the USEK Faculty of Business and Commercial Sciences, praised the efforts deployed by H.E. Mr. Mohammad Al Safadi. Referring to the fact that the latter chairs the most critical Ministry in Lebanon, particularly under current worldwide tough economic situations, Prof. Azouri remarked, “We are all aware of the recession and economic problems in Europe, America and all over the world. Economic indicators are going up and down. And while the region is going through major political conflicts, Lebanon seems to be more vulnerable to new economic problems, and even political and social ones.”

H.E. Mr. Mohammad Al Safadi began his lecture by pointing out that the public debt will exceed 60 billion dollars by the end of 2012, and that the Treasury is facing a huge deficit reaching 1400 billion LBP. He underlined that wage hikes should be coupled with an increase of working hours and of productivity in the public sector. He considered that the public debt could be reduced by 1000 billion LBP if Lebanon resorts to the international market, wherein loans can be obtained with much lower interests than the local market. He also considered that investment in the field of gas and power plants is essential, despite the difficulty of financing. “The more we can engage the private sector in carrying out big infrastructure projects, the more we can lower costs and provide more employment opportunities for our young people”, he added. He further announced that the Ministry of Finance will soon submit a new bill for the budget, taking into account all the variables, adding: “…despite the increase of public debt, Lebanon is still classified as “B” in the credit rating, since its financial situation is still safe, and the value of gold and governmental assets exceed the debt value; that is why it is still able to resort to foreign markets”. The Minister of Finance considered that Lebanon will be able to reduce public debt when it can reach a growth rate of 9% per year. He finally stressed that the situation in Syria has led to a decrease in Lebanese exportations to Syria and other Arab countries but that such impact has not yet reached a dangerous level.