Fitch Ratings, the international rating agency, recently issued a report where it considered that the inconclusive results of the latest parliamentary elections may hamper Lebanon’s exit from default. In details, the report pointed out that the results of the elections will make it difficult to form a government and for any party to obtain a sizeable majority in the government, hindering as such the ability of any new government to implement economic and financial reforms that are considered prerequisite to the release of support from the IMF and other donors. Fitch also commented on the outgoing government’s recent approval of a financial recovery plan which entails eliminating a significant portion of the Central Bank’s foreign currency liabilities, the restructuring of the banking sector and a haircut on deposits, albeit that small deposits will be protected. The agency considered the government’s recovery plan as one of the main requirements of the recently signed staff-level agreement with the IMF which will unlock some $3 billion to Lebanon over a period of 46 months if all other prerequisites are met. On the other hand, Fitch highlighted the stance of the Association of Banks in Lebanon (ABL) from the financial reform plan whereby the ABL considers that the plan is shouldering the burden of losses on depositors. It is worth noting that Fitch Ratings, reaffirmed on August 18, 2021 Lebanon’s long-term foreign currency Issuer Default Rating (IDR) at Restricted Default “RD” and the local currency IDR at “CC”, signaling its expectations of a potential restructuring.