1, Lebanon's economy has been very poor in recent decades, with capital flight and decreasing foreign exchange reserves, so its credit in the capital market is very low.
Even if you can get a loan, you often have to face high interest rates. More importantly, in many cases, you are robbing Peter to pay Paul to pay off debts due.
2. For decades, the Lebanese government has been corrupt, incompetent and chaotic in management. Coupled with the stagnation of economic development, its economic development can not go up, which also led to a great decline in Lebanon's repayment ability.
It is said that all banks in Lebanon have reached out to the government for money, so they have no choice but to turn to the IMF for help.
3. The aid conditions given by 3.IMF are often very harsh.
Such harshness is manifested in the fact that the IMF often puts forward some conditions. For example, countries receiving aid are required to tighten their finances, and the second is economic and financial liberalization and market opening. The third is to rectify the domestic financial system and let bad financial institutions go bankrupt. For many countries, these three steps are really harsh and unacceptable.
Therefore, for many countries, it is basically that unless there is no way out or the conditions can be discussed, they will rarely offer such assistance to the IMF, because taking money is only to quench their thirst, and it is hard to say whether the distant fire can be extinguished. Moreover, according to the prescription prescribed by the IMF, many countries have not only failed to get out of the predicament, but even the problem has become more serious. This kind of assistance, coupled with various harsh conditions in western countries, is really not so easy to get.