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A London-based financial center urged Lebanese banks to monitor any deposit outflow from the country if confidence in this sector is shaken by political events.Joseph Torbey, the president of the Association of Banks in Lebanon, has previously said that if deposit growth in general stood at at least 5 percent then banks would be able to finance the public debt and provide loans to the private sector.IHS stressed that there are certain conditions that could impede capital outflow from Lebanon.IHS also predicted that the country's GDP growth would remain relatively low amid the ongoing political standoff and unabated fighting in neighboring Syria. But despite the relatively resilient banking sector and high foreign currency reserves, IHS noted that reducing the high public debt is still one of the biggest challenges facing the government and did not anticipate a breakthrough on this issue due to the political paralysis.
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