Regardless of its decision to pay, default, or default selectively on its debt, the Lebanese government is aiming at the remaining $30 billion in reserves at the central bank and looking for an excuse to seize them. Dr. Mardini warned against using this money to pay public employees’ salaries, subsidize electricity, and import goods. The central bank should show independence in this critical period and say no to funding government with what remains from depositors’ dollars. The government on the other hand would have to reduce public spending and decrease its size. Dr. Mardini cautioned officials and asked them to treat local and international bondholders similarly to avoid arbitrage in selling bonds. Resorting to depositors’ money may lead to a Venezuelan scenario and hyperinflation, he added. 

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