(Clarifies: Financial expert heard Guterres voice similar opinion at separate meeting.

BEIRUT, Reuters – U.N. Secretary General Antonio Guterres claimed that Lebanon’s financial collapse resulted from “something similar to a Ponzi Scheme”, as outlined in a video of his comments made during a visit to Beirut last week.

The third year of economic collapse in Lebanon has ended. It began in 2019, when financial systems crashed under huge amounts of state debt. This was the result of years of corruption, mismanagement, and unsustainable financing.

The Lebanese authorities are being criticized for comparing the financial system with a Ponzi scheme that relies on new borrowing in order to repay existing debt.

The central bank denied it.

Guterres claimed in the social media video, “As far i understand what has occurred in Lebanon, was that Lebanon was using something like a Ponzi Scheme , which means that along with corruption, other likely forms of theft, the financial system is now in collapse.”

Lebanese pound has lost more than 90% and savers have been frozen from their bank accounts.

Mike Azar (an expert on Lebanese finances) said Guterres shared similar views in a separate closed-door meeting on Tuesday between U.N. Chief and Lebanese members of civil society.

Reuters inquired about the comments. The spokesperson from the U.N. stated that Secretary General’s thoughts on financial crisis were more fully articulated at a news conference after his visit.

Guterres stated that Lebanese leaders must convince the international community of Lebanon’s support by implementing reforms in “relation to the economic and social life of the nation” and adopting an “authentic economic recovery plan” to be eligible for IMF support program talks.