Lebanon is on track to form a new national unity government in the next few days, politicians said on Tuesday, raising hopes for an end to more than seven months of wrangling that has darkened the outlook for its struggling economy. Efforts to form the new government, led by Prime Minister-designate Saad al-Hariri, have been obstructed by conflicting demands for cabinet seats that must be parcelled out in line with a finely balanced, sectarian political system. Heavily indebted and suffering from a stagnant economy, Lebanon is in dire need of an administration that can set about long-stalled reforms to put public debt on a sustainable footing. “We are in the last phase and it is probable that the government will be formed before the Christmas holiday,” Finance Minister Ali Hassan Khalil told Reuters. “This will leave a positive impact on the financial and economic situation and open the way for a start to dealing this file,” he added. Fitch Ratings on Tuesday changed Lebanon’s outlook to negative from stable, citing a further deterioration in government deficits and debt dynamics and signs of rising pressures on Lebanon’s financing model. Published in Daily Times, December 19th2018.