Bundle Of English Reports, News and Editorials For December 11-12/2019 Addressing the On Going Mass Demonstrations & Sit In-ins In Iranian Occupied Lebanon in its 56th Day
Compiled By: Elias Bejjani
December 12/2019
Tites For The Latest English LCCC Lebanese & Lebanese Related News published on December 11-12/2019
France, U.N. Host International Meeting on Aid for Lebanon
Pompeo Says U.S. Ready to Help Lebanon as Le Drian Urges Rapid Govt. Formation
U.S. Official Says ‘No Aid Package’ to Save Lebanon from Its ‘Financial Mess’
Le Drian: International help for Lebanon is conditional to the formation of a reformist government
Paris conference a sign of international concern for Lebanon: Berri
Paris Meeting Urges ‘Credible Reforms, Reformist Govt.’ in Lebanon
Final statement by International Support Group for Lebanon (ISG)
Hariri Urges ‘Harmonious, Credible’ Technocrat Government
Hariri Discusses Lebanon Economic Difficulties with British Minister
Lebanon faces ‘chaotic unwinding’ of economy without reforms: ISG
Lebanon Rejects Iranian Threat to Attack Israel from its Territories
Lebanese Labor Minister Receives Requests from 70 Companies to Dismiss 1,500 Employees
Lebanon’s 2019 deficit much bigger than expected: Finance Minister
Lebanon budget deficit ‘much bigger’ than expected, says minister
Association of Lebanese Industrialists Sounds Alarm over Economic Crisis
Judge Aoun Orders Arrest of Head of Traffic Management Authority
Nasrallah to deliver televised speech Friday
Berri meets UK’s Defense senior adviser, Wednesday Gathering MPs, El Hassan
Hobeish follows up on Salloum’s file with Oueidat, Bar Association
Hariri thanks participants in ISG meeting: Solution is technocratic government and rescue plan implemented with the support of our friends
Hariri receives Lorimer, Egyptian Ambassador
Convoys roam Tripoli streets
British Envoy in Beirut Affirms Continued Support for Army
Report: Signs of Breakthrough as Banks Mull Easing Restrictions
Diplomats to Lebanon: Expect no aid before government formed
Diplomats in Paris discuss aid for battered Lebanese economy
The Latest English LCCC Lebanese & Lebanese Related News published on December 11-12/2019
France, U.N. Host International Meeting on Aid for Lebanon
Agence France Presse/Associated Press//Naharnet/December 11/2019
Diplomats were meeting behind closed doors in Paris on Wednesday to consider measures to help Lebanon as it grapples with ongoing political turmoil and its worst economic crisis in decades.
The International Support Group, co-chaired by France and the United Nations, is weighing conditions for providing financial aid to Lebanon. Lebanese businesses and households are growing increasingly desperate as cash supplies there have dwindled. For two months, protests have decried government mismanagement and the current political system. But even as the financial crisis deepens, protesters have denounced the Paris meeting and promised to condemn any international financial assistance to a government they see as corrupt and illegitimate. Prime Minister Saad Hariri resigned Oct. 29, but he has stayed on as caretaker prime minister since politicians have been unable to form a new government. Protesters want to see a non-sectarian, technocratic government — and they want all traces of the old regime, including Hariri, out of office. French Foreign Minister Jean-Yves Le Drian said at a press conference ahead of the Paris meeting that Lebanese authorities must “take into account the call of the street.” He urged Lebanese authorities to “form a government rapidly because any delay will aggravate the situation.” Meanwhile, dozens of protesters in Beirut and Paris rallied Wednesday to call on the leaders meeting in France not to give financial assistance until a new government comes together. “This authority … no longer represents the Lebanese,” said a protester in Beirut reading a letter to be delivered to the French ambassador. Calling the current government corrupt, the protester said: “We don’t want (that aid) to go to waste.” Hariri has called on Saudi Arabia, France, Turkey, the United States, China, and Egypt to send funds to help Lebanon finance imports. But international donors are unlikely to write a check without substantial commitments to reform. More than 50 countries pledged last year to give Lebanon $11 million in aid, conditioned on Hariri implementing long-stalled reforms. Promised reforms never materialized.
The U.N.-created International Support Group for Lebanon has stressed the need for a stable government that listens to public opinion expressed in the ongoing popular uprising, organizers said.
The French foreign ministry said the meeting “should allow the international community to call for the rapid formation of a credible and efficient government to take the decisions necessary to restore the economic situation.”
And it urged the authorities to “respond to the aspirations expressed by the Lebanese” people. The aim of the gathering is to identify the conditions and reforms required from the government “so that the international community can accompany Lebanon” on its recovery, the foreign ministry said in a statement.
It vowed France’s continued support for the country in the current “difficult context,” and said stability in Lebanon was essential for the region. The ISG was created in 2013 by then U.N. Secretary-General Ban Ki-moon to help Lebanon deal with the fallout of the war in neighboring Syria. It gathers agencies of the U.N., the European Union, Arab League, United States, China, France, Germany, Russia, Italy and Britain. An organization calling itself the Union of Secular Lebanese in France vowed to protest at the foreign ministry against any meeting with Lebanon’s “current corrupt government,” which it described as illegitimate. Lebanon has been gripped by unprecedented cross-sectarian protests since October denouncing perceived government mismanagement and corruption. “We ask all those responsible for this meeting to respect the demands of the Lebanese people,” the organizers of Wednesday’s picket said by email. “Any financial assistance provided under this framework will only support the corrupt… system that is unable to manage the crisis.” The U.S. State Department said Assistant Secretary for Near Eastern Affairs David Schenker would attend the ISG meeting “to facilitate the formation of a government capable of implementing economic reforms and ending endemic corruption.”
Pompeo Says U.S. Ready to Help Lebanon as Le Drian Urges Rapid Govt. Formation
Associated Press/Naharnet/December 11/2019
U.S. Secretary of State Mike Pompeo told reporters on Wednesday that “the responsibility lies with the Lebanese people” to push for a new political order. He said the U.S. is ready to “do the things that the world can do to assist the Lebanese people getting their economy right and getting their government right.”The U.S. has escalated its sanctions on Iran-backed Hizbullah, which dominates the national unity government that Saad Hariri headed. French Foreign Minister Jean-Yves Le Drian meanwhile said at a press conference ahead of a Paris meeting for supporting Lebanon that Lebanese authorities must “take into account the call of the street.” He urged Lebanese authorities to “form a government rapidly because any delay will aggravate the situation.”
U.S. Official Says ‘No Aid Package’ to Save Lebanon from Its ‘Financial Mess’
Associated Press/Naharnet/December 11/2019
U.S. Assistant Secretary of State for Near Eastern Affairs David Schenker said Wednesday that attendees at a Paris meeting on supporting Lebanon had agreed to give technical advice to Lebanese institutions but they won’t provide the bailout that caretaker Prime Minister Saad Hariri had requested. Hariri had called on Saudi Arabia, France, Turkey, the United States, China, and Egypt to send funds to help Lebanon finance imports. “There’s no aid package, there is no bailout,” Schenker told The Associated Press. “Lebanon is not being saved from its financial mess.”Schenker said the group is considering sending some humanitarian aid to Lebanon to alleviate residents’ suffering, though it was unclear when or how much. Schenker also insisted the U.S. is not laying out conditions for which groups can be included in the new government. “We have stuck until now with focusing on a set of principles, which is not who is the prime minister, not who is the minister of finance, not what party they’re from, not what religion they’re from — but whether they are capable of reform,” he told AP.
Le Drian: International help for Lebanon is conditional to the formation of a reformist government
NNA/December 11/2019
French Foreign Minister, Jean-Yves Le Drian, announced in the wake of the Paris meeting for the International Support Group for Lebanon (ISG) that the international community’s financial help for Lebanon is conditional to the formation of a “reformist government.” Speaking at the end of the meeting, Minister Le Drian said that the only criterion should be the effectiveness of this government in terms of the reforms that the people are waiting for. “Only this approach will allow all participants in this meeting and others to mobilize to give Lebanon all the support it needs,” Le Drian said.
Paris conference a sign of international concern for Lebanon: Berri
Reuters, Beirut/Wednesday, 11 December 2019
A Paris conference to mobilize support for Lebanon showed that the international community is more concerned about the country than some Lebanese, Parliament Speaker Nabih Berri said on Wednesday. “This conference … is a strong indication that the international community is more interested in Lebanon, its stability and security than some Lebanese,” Berri told lawmakers in his parliamentary bloc, Ali Bazzi, one of the MPs said. Berri also said he would call a parliamentary session very soon to debate and approve the 2020 budget.
Paris Meeting Urges ‘Credible Reforms, Reformist Govt.’ in Lebanon
Naharnet/December 11/2019
A Lebanon support meeting held Wednesday in Paris has urged the crisis-hit country to endorse a “bundle of sustainable, comprehensive and credible economic reforms.”In a draft closing statement, the International Support Group for Lebanon (ISG) also called on Lebanese authorities to “approve a credible state budget for 2020 within weeks from the formation of the new government.”Speaking after the meeting, French Foreign Minister Jean-Yves Le Drian said any international financial support for Lebanon hinges on the formation of what he called a “reformist government.”“The only standard should be this government’s effectiveness in terms of the reforms awaited by the people. Only this approach will allow all the participants in this meeting and others to mobilize in order to offer Lebanon all the support it needs,” Le Drian said. Speaking earlier in the day prior to the meeting, the minister said that Lebanese authorities must “take into account the call of the street.”He urged Lebanese authorities to “form a government rapidly because any delay will aggravate the situation.”
The secretary general of the Lebanese Foreign Ministry Hani Chemaitelly, who represented Lebanon at the meeting along with other mid-level officials, meanwhile told LBCI television that the atmosphere at the meeting was positive and that the ISG “sent a clear message on being committed to helping and embracing Lebanon.” The TV network for its part reported that Chemaitelly held bilateral talks in Paris with Le Drian, U.S. Assistant Secretary of State for Near Eastern Affairs David Schenker, director of the Middle East and North Africa department at the French foreign ministry, Christophe Farnaud, and his counterpart at the French foreign ministry. The ISG was created in 2013 by then U.N. Secretary-General Ban Ki-moon to help Lebanon deal with the fallout of the war in neighboring Syria. It gathers agencies of the U.N., the European Union, Arab League, United States, China, France, Germany, Russia, Italy and Britain. Lebanon has been gripped by unprecedented cross-sectarian protests since October denouncing perceived government mismanagement and corruption. Lebanon is also grappling with a free-falling economy, and an escalating liquidity crisis. The dollar exchange rate in the parallel market has shot up from the pegged rate of 1,507 pounds to the greenback to around 2,250. Banks have meanwhile imposed restrictions on withdrawals and transfers. Prime Minister Saad Hariri stepped down two weeks into the revolt, but a deeply divided political class has failed to reach agreement on a new head of government. Hariri remains caretaker premier.
Final statement by International Support Group for Lebanon (ISG)
NNA/December 11/2019
A meeting of the International Support Group for Lebanon (156), jointly chaired by France and the Office of the United Nations Special Coordinator for Lebanon, was held in Paris on December 11th.
China, Egypt, Germany, Italy, Kuwait, Russia, the United Arab Emirates, the United Kingdom, the United States, the European Bank for Reconstruction and Development, the European Investment Bank, the European Union, the International Monetary Fund, the League of Arab States, the World
Bank and the International Finance Corporation took part in the meeting. Representatives of the Lebanese authorities also attended the discussions.
Lebanon has been left without a government for more than six weeks since Saad Harini resigned on October 29. The Group considers that preserving Lebanon’s stability, unity, security, sovereignty,
political independence and territorial integrity requires the urgent formation of an effective and
credible government capable to meet the aspirations expressed by all the Lebanese that will have the capacity and credibility to deliver the necessary substantive policy package of economic reforms, and that will be committed to dissociate the country from regional tensions and crisis. It is urgent for the new government to be in place as quickly as possible.
The Group noted that Lebanon faces a deep economic and social crisis which has placed the country at risk of a chaotic unwinding of its economy and of increased instability. In order to halt the sharp deterioration in the economy and financial sector, to restore confidence in the economy and to address, in a sustainable manner, the social and economic challenges, there is an urgent need for the adoption of a substantial, credible and comprehensive policy package of economic reforms to restore fiscal balance and financial stability and address long-lasting structural deficiencies in the Lebanese economy.
A sustainable financing model is needed to reduce the economy’s vulnerability and reliance on external funding. These measures are of utmost importance to bring answers to the aspirations expressed by the Lebanese people.
The context requires, as part of a stabilization strategy, that Lebanese authorities fully commit themselves to timely and decisive measures and reforms. The Group therefore calls upon Lebanon to immediately adopt a reliable 2020 budget as a first step towards a multi-year fiscal program, including permanent revenue and expenditure measures, aiming at sustainable improvement of the primary balance, while strengthening social safety nets to protect the poorest and most vulnerable, and a debt management strategy. It also urges the Lebanese authorities to take decisive action to restore the
stability and sustainability of the funding model of the financial sector, to tackle corruption and tax
evasion (including adoption of an anti-corruption national strategy, the anti-corruption agency law and judicial reform and other measures to instill transparency and accountability) to reform state-owned
enterprises and implement the electricity reform plan including governance-enhancing mechanism (through an independent regulatory body), and to markedly improve economie goverance and the business environment, through the passing of and effectively implementing procurement laws. On the longer run, within the first six months after the formation of the government, ambitious structural measures to ensure a sustainable economic model should be put in place. The Group reaffirms that the conclusions of the CEDRE Conference, agreed upon by the Lebanese authorities on April 6, 2018, are still valid.
In this regard, the Lebanese authority should accelerate implementation of existing projects and commit to prioritize the different projects of the Capital Investment Plan in line with people’s needs and expectations and set up an interministerial committee to oversee their timely implementation. The Group considers that the support from international financial institutions
is pivotal to help the authorities sustain their efforts to implement the necessary economic reforms over time.
The Group reaffirms its willingness to support a Lebanon committed to reforms in the implementation of such a comprehensive set of actions, including through technical assistance to a new government, and to ensure Lebanon’s access to basic goods and trade facilities, as already provided for by trade facilitation programs, to preserve the livelihood of the population and economic resilience. It encourages the Lebanese authorities to identify reasonable and sustainable ways to face the current crisis, notably through support from their development partners, including international financial institutions.
The Group commends the Lebanese Armed Forces and Internal Security Forces for their actions in securing the peaceful character of the protests and the rights of citizens more broadly. The Group reiterates that the right to peaceful protest must be respected and call on all sides to act responsibly.
The Lebanese delegation has been informed of the conclusions of the meeting. It indicated Lebanon’s commitment to work to implement this roadmap with the international community on their side. Against this backdrop, the Group reaffirmed its readiness to accompany Lebanon in swiftly defining precise measures to be taken and modalities of support. Inclusive dialogue with civil society and the private sector must be part of this process. The Group welcomes the prospect of future meetings with different configurations and levels as needed.
Hariri Urges ‘Harmonious, Credible’ Technocrat Government
Naharnet/December 11/2019
Caretaker Prime Minister Saad Hariri on Wednesday thanked France and the U.N. for the Lebanon support meeting that was held in Paris and called for expediting the formation of a “credible and harmonious” technocrat cabinet.
“I thank France and the United Nations for inviting the International Support Group for Lebanon to today’s meeting in Paris, and I also thank all of Lebanon’s friends, brothers and the representatives of the international institutions who took part in the meeting and expressed their keenness on helping Lebanon overcome the dire economic crisis it is facing,” Hariri said in a statement released by his office. Adding that he took note of the closing statement that was issued by the ISG, the caretaker PM said “expediting the formation of a harmonious and credible technocrat government” is necessary to overcome the crisis. He also called for “devising a salvation plan for the economic, social, monetary, financial and productive sectors” and implementing it “with the full support of Lebanon’s brothers and friends in the international community, the international financial institutions and the Arab funds.”
Hariri Discusses Lebanon Economic Difficulties with British Minister
Naharnet/December 11/2019
Caretaker Prime Minister Saad Hariri on Wednesday called the British Secretary of State for Middle East and North Africa, Andrew Morrison, Hariri’s office said. He discussed with him “the economic difficulties that Lebanon is facing and the efforts to tackle the crisis,” the office said in a statement. Hariri also thanked Morrison for Britain’s support for Lebanon.
Lebanon faces ‘chaotic unwinding’ of economy without reforms: ISG
Agencies/Wednesday, 11 December 2019
Lebanon faces a chaotic unwinding of its economy and increased instability if it does not enact swift reforms that give international financial institutions the confidence to offer support, the UN-created International Support Group (ISG) for the country said. Grappling with its worst economic crisis since the 1975-90 civil war, Lebanon has been politically paralyzed since Saad Hariri quit as prime minister after mass protests against the ruling elite. The pound currency has slumped and banks have enforced capital controls. “In order to halt the sharp deterioration in the economy … there is an urgent need for the adoption of a substantial, credible and comprehensive policy package of economic reforms to restore fiscal balance and financial stability,” the ISG said in a final communique after a meeting in Paris on Wednesday. The group urged the Lebanese authorities to adopt a “reliable 2020 budget” in the first weeks after the formation of a new government and fight more rigorously against corruption. Lebanon won pledges of over $11 billion at a conference last year, conditional on reforms that it has failed to implement. The economic crisis is rooted in years of corruption and waste that have generated one of the world’s heaviest public debt burdens. French Foreign Minister Jean-Yves Le Drian said a credible government was needed to push through the reforms needed to open the way for international financial support. “The ISG members consider that the support from international financial institutions is pivotal to help the authorities sustain their efforts to implement the necessary economic reforms over time,” the statement added. A diplomatic source said the support group was intent on holding back all financial help until a credible government was in place, adding there would be “no blank check or bailout.”Lebanese anti-government protesters held a rally earlier on Wednesday outside the French embassy in the capital Beirut to protest against the ISG meeting in Paris. Lebanese Parliament Speaker Nabih Berri said that Paris conference to mobilize support for Lebanon showed that the international community is more concerned about the country than some Lebanese. Caretaker finance minister Ali Hassan Khalil said on Wednesday that Lebanon’s 2019 budget deficit will be much bigger than expected owing to a “very concerning” decrease in state revenues. with Agencies
Lebanon Rejects Iranian Threat to Attack Israel from its Territories
Beirut – Asharq Al-Awsat/Wednesday, 11 December, 2019
Iran’s threat to attack Israel from Lebanese territories sparked outrage in Beirut that condemned Tehran for transforming the country into a “mailbox for the Iran Revolutionary Guards.”Caretaker Defense Minister Elias Bou Saab deemed the threat a violation of Lebanon’s sovereignty. Senior Guards commander Morteza Qorbani told Mizan News: “If the Zionist regime makes the smallest mistake toward Iran, we will reduce Tel Aviv to ashes from Lebanon.” He added that Iran would not need to fire a single missile from its territories. Elias Bou Saab slammed the remarks, tweeting: “These statements are unfortunate and unacceptable. They are a violation of the sovereignty of Lebanon, which enjoys ties of friendship with Iran that should not infringe on its independent decision-making in any way, shape or form.”Caretaker Information Minister Jamal al-Jarrah said Qorbani’s remarks are “irresponsible” and “arrogant.”
They are a violation against Lebanon’s sovereignty, people and state, he said in a tweet. “Iran may defend itself in any way it likes, but Lebanon is not the Guards’ mailbox or an arena for foreign actors,” he stressed. MP Nadim Gemayel called on Hezbollah leader Hassan Nasrallah, President Michel Aoun and caretaker Prime Minister Saad Hariri to issue a clear response to Qorbani’s statements.
Lebanese Labor Minister Receives Requests from 70 Companies to Dismiss 1,500 Employees
Beirut – Asharq Al-Awsat/Wednesday, 11 December, 2019
Lebanese caretaker Labor Minister Kamil Bou Sleiman revealed on Tuesday that during the past 10 days, he has received requests from over 70 companies for the dismissal of more than 1,500 employees as the country endures its worst economic crisis since the 1975-90 civil war. “We have been negotiating with them to reach positive results,” the minister said. The eruption of anti-government protests on October 17 have only compounded Lebanon’s economic woes. Hundreds of employees across the country have submitted complaints against employers due to their arbitrary sacking from their jobs or due to their salaries being halved. Bou Sleiman revealed that he had contacted caretaker Justice Minister Albert Serhan to activate labor courts of arbitration in wake of the dire economic situation in the country that has negatively impacted the labor market and the majority of companies. He suggested that the courts hold daily hearings to address cases, he added. Verdicts must be issued after no more than three months.Also on Tuesday, Bou Sleiman visited the General Labor Confederation’s headquarters where he called on companies “against rushing to lay off employees at the first setback.”He also demanded that the state pay a portion of its social security dues before the end of the year. The minister also uncovered that his ministry is trying to work on a draft law to regulate the exceptional situation Lebanon is going through and protect employees.
Lebanon’s 2019 deficit much bigger than expected: Finance Minister
Reuters, Beirut/Wednesday, 11 December 2019
Lebanon’s 2019 budget deficit will be much bigger than expected owing to a “very concerning” decrease in state revenues, caretaker finance minister Ali Hassan Khalil said on Wednesday, as the country struggles with a deep financial crisis.Khalil said Lebanon, which has been swept by protests since Oct. 17, is facing serious difficulties financing the state, in remarks to reporters aired on broadcaster LBCI.
Lebanon budget deficit ‘much bigger’ than expected, says minister
Al Jazeera/December 11/2019
Caretaker finance minister says ‘we are faced with real difficulties in financing the state as a whole’.
“Our revenues for the last three months of the year have decreased in a very big way as a result of the situation we are living with … we have numbers that are honestly very worrying,” he said. In comments to broadcaster MTV, caretaker Economy Minister Mansour Bteish said Lebanon was losing about $70m to $80m a day, about half its usual income, because of the political paralysis. Bteish said the situation had worsened and required quick solutions, but assured jittery depositors they should not fear for their savings. Lebanon approved a 2019 budget last May that projected a deficit of 7.6 percent of gross domestic product (GDP). GDP measures the market value of all finished goods and services in an economy, and when the budget was approved in May, the assumption was that Lebanon’s economy would grow 1.2 percent. But the economic crisis has deepened severely since then. A shortage of foreign exchange has already led some banks to enforce capital controls though those have not been formalised by the authorities. Banks have all but blocked transfers abroad and capped withdrawals at a few hundred dollars per week. The Lebanese pound meanwhile has lost approximately one-third of its value against the US dollar on a parallel market, the only source of dollars for most importers. The restrictions have led some importers to slash their orders as they have been unable to source dollars at the official rate or make transfers abroad. Scores of companies have laid off workers or slashed their wages. Khalil said public salaries were a priority and would be paid this month and in coming months, but that “doesn’t deny that we are faced with real difficulties in financing the state as a whole”. It has been six weeks since Saad Hariri resigned as prime minister amid protests against the ruling elite, and Lebanon needs to form a new government to enact urgent reforms it hopes will net support from foreign donors. France hosted a meeting on Wednesday of the International Lebanon Support Group, which includes Gulf Arab donors such as Saudi Arabia, major European powers and the United States, though the meeting is not expected to result in new pledges of aid. Lebanon’s public debt burden, equivalent to about 150 percent of GDP, is one of the heaviest in the world. Last year’s deficit was equal to about 11.5 percent of GDP, and economic growth rates have been weak for years.
Association of Lebanese Industrialists Sounds Alarm over Economic Crisis
Naharnet/December 11/2019
In light of an aggravating economic crisis, the Association of Lebanese Industrialists sounded the alarm on Wednesday over a shortage in raw materials, warning of escalating measures. Head of the Association, Fadi Gemayel said in a televised press conference: “The industry is facing a fateful challenge related to deprivation of raw materials. It is a matter of life and death. Depriving us of raw materials is a crime and we will not remain idle,” he warned. He said the Association will be compelled to escalate “it is the only way, and we have decided to implement a first step within 10 days at the latest. The necessary measures must be taken immediately to approve financial facilities and ensure liquidity.”Referring to the wave of employee dismissals, he said: “We have kept our employees during the most challenging times, and we will spare nothing to keep that principle.”Lebanon is experiencing its worst economic and financial crisis amid zero economic growth and massive debt. Local banks have imposed unprecedented capital controls and thousands of employees have been either laid off or had their salaries slashed. The crisis has worsened since Oct. 17, when nationwide protests against years of corruption and mismanagement erupted, leading to the resignation of PM Saad Hariri’s government two weeks later. Protesters now want that entire political elite, that has ruled the country since the end of the 1975-90 civil war, out. Lebanon imports most of its basic needs, including wheat, petrol and medicine, leading to a huge trade deficit. Importers have been facing difficulties in getting U.S. dollars to cover imports as the local currency, which has been pegged to the dollar since 1997, lost 40% of its value on the black market.
Judge Aoun Orders Arrest of Head of Traffic Management Authority
Naharnet/December 11/2019
Mount Lebanon Prosecutor Judge Ghada Aoun on Wednesday ordered the arrest of Huda Salloum, the Director of the Traffic, Trucks and Vehicles Management Authority. The National News Agency said Aoun based her decision on the lawsuit filed by the lawyer Wadih Akl, which accuses Salloum of offenses related to bribery, forgery, the waste of public funds, illicit enrichment and mismanagement. The prosecutor referred the file to Beirut First Examining Magistrate Georges Rizk. Ex-interior minister Nouhad al-Mashnouq meanwhile defended Salloum in a tweet, describing her as “one of the most upright employees of the Lebanese state.”“The breach of legal norms in summoning a director general to interrogation without a written permission from the relevant minister is not a minor issue,” Mashnouq warned. “The justice minister must take the necessary measures in order to rectify the situation, or else there is neither a fair judiciary nor a capable state,” Mashnouq added. He also saluted MP Hadi Hbeish of the al-Mustaqbal Movement.
Nasrallah to deliver televised speech Friday
NNA//December 11/2019
Hizbullah Secretary General Sayyed Hassan Nasrallah is to deliver a televised speech upcoming Friday at 5.30 p.m. to dwell on the latest political developments.
Berri meets UK’s Defense senior adviser, Wednesday Gathering MPs, El Hassan
NNA/December 11/2019
House Speaker, Nabih Berri, urged all to realize the seriousness of the current situation, stressing the need to remove all obstacles and reasons impeding government formation. Speaker Berri’s fresh stance came during the weekly Wednesday Gathering meeting at his Ain Tineh residence.
Discussions touched on the decisions of the international conference in support of Lebanon held in Paris. Berri expressed concerns about the future of the country amid the continuation of the current crises that necessitate a swift solution to the government file, in terms of designation and formation.
The Speaker told his visiting MPs that “the Conference [Paris Conference] in itself was a strong signal that the international community cares about Lebanon, its stability and security more than some Lebanese.” Berri also pointed out that a parliamentary session will be held in the near future, to discuss and approve the state budget upon its finalization by the relevant committee working on it. The Speaker also stressed the importance of providing health, social, livelihood and economic security for the Lebanese citizens. On the other hand, Berri received the senior adviser to the British Ministry of Defense for the Middle East, General John Lorimer, with whom he discussed the general situation and the bilateral relations between Lebanon and the UK.
On emerging, General Lorimer gave no statement to media. This afternoon, Berri met with Caretaker Interior and Municipalities Minister, Rayya El Hassan, with talks reportedly touching on the latest developments on the domestic scene, notably the security situation.
Hobeish follows up on Salloum’s file with Oueidat, Bar Association
NNA/December 11/2019
MP Hadi Hobeish has arrived at the Baabda Justice Palace in the wake of Judge Ghada Aoun’s decision to arrest the Director General of the TTraffic, Trucks and Vehicles Management Authority, Huda Salloum.
On emerging, MP Hobeish announced that he was heading to the Bar Association and later to State Prosecutor Judge Ghassan Oueidat, to follow up on Salloum’s file in light of the recent decision by Mount Lebanon Attorney General, Judge Ghada Aoun. Judge Aoun has referred Salloum’s file to Beirut’s acting First Investigative Judge George Rizk. On the other hand, the Supreme Judicial Council will hold an extraordinary meeting at 5.00 p.m. this afternoon, to discuss today’s developments at the Baabda Justice Palace.
Hariri thanks participants in ISG meeting: Solution is technocratic government and rescue plan implemented with the support of our friends
NNA/December 11/2019
Caretaker Prime Minister Saad Hariri thanked France and the United Nations for inviting the International Support Group for Lebanon ISG to meet in Paris today. He also thanked all of Lebanon’s friends and brothers and the representatives of international institutions who participated in the meeting and expressed their keenness to help Lebanon get out of the severe economic crisis it faces.Hariri said that he took due note of the final statement issued by the group, adding that he believes that getting out of the crisis requires:
1- Accelerating the formation of a government of technocrats that constitutes a homogeneous and credible working group qualified to provide answers that meet the aspirations of the Lebanese after October 17.
2- Preparing a rescue plan at the economic, social, monetary, financial and production levels.
3- Implementing this plan with the full support of the brothers and friends of Lebanon in the international community, the international financial institutions and Arab funds.
Hariri receives Lorimer, Egyptian Ambassador
NNA/December 11/2019
Caretaker Prime Minister Saad Hariri received this evening at the Center House the UK Defense Senior Adviser to the Middle East and North Africa DSAME, Lieutenant General Sir John Lorimer, at the head of a delegation, and discussed with him the bilateral relations and the cooperation between the two countries. Hariri also met with the new Egyptian ambassador to Lebanon, Yasser Alawi, who said, after the meeting: “I was honored to meet with Prime Minister Hariri. This is my first meeting with him after presenting my credentials. We discussed the situation in the region in general and in Lebanon in particular, and the importance of going ahead immediately with the designation of the Prime Minister and the formation of the government, because wasting time is a choice that Lebanon can’t bear.”
Convoys roam Tripoli streets
NNA/December 11/2019
A convoy of vehicles set off from Tripoli’s southern entrance, and roamed the various streets of the city, NNA correspondent reported on Wednesday.The convoy waving the Lebanese flags reached Abdel Hamid Karami Square [Al Nour Square].
British Envoy in Beirut Affirms Continued Support for Army
Naharnet/December 11/2019
A British envoy who arrived in Beirut late on Tuesday will meet senior Lebanese officials to “discuss the situation in Lebanon at various levels”, al-Joumhouria daily reported on Wednesday. Lieutenant General Sir John Lorimer, the UK’s Defence Senior Advisor to the Middle East, met today with President Michel Aoun at the Presidential Palace in Baabda. Lorimer affirmed to the President that Britain “will continue to support the Lebnese army with equipment and training,” the National News Agency quoted him as saying.
Lorimer is scheduled to later meet Speaker Nabih Berri and caretaker Prime Minister Saad Hariri and a group of officials, said the daily. Well-informed sources told the daily that “Lorimer’s visit is not different from the mission of the British and French envoys, who had visited Beirut in recent weeks in preparation for forming a comprehensive European position on what is happening in Lebanon at various levels.”Last month, director of the Middle East and North Africa department at the French foreign ministry, Christophe Farnaud; and Richard Moore, Director General for Political Affairs at the UK Foreign & Commonwealth Office, met in Lebanon with officials.
Report: Signs of Breakthrough as Banks Mull Easing Restrictions
Naharnet/December 11/2019
A breakthrough at the financial level will likely begin to unravel, amid reports that banks are mulling to facilitate “fresh money” transactions after tight measures to deter the sector from collapse, said al-Joumhouria daily on Wednesday. Banks will begin today by allowing depositors withdraw remittances from abroad in the same foreign currency that is transferred to them after they were delivered to the recipients in the Lebanese currency, or by bank checks, according to the daily. Shall banks start applying that, the move paves way to return some money back inside Lebanon, it added. In that context, Caretaker Prime Minister Saad Hariri met Tuesday evening at the Center House with caretaker Interior Minister Raya al-Hassan and caretaker Finance Minister Ali Hassan Khalil. The meeting was held in the presence of Hariri’s economic advisor Nadim Munla.A statement issued by Hariri’s office said discussions focused on “the financial and economic situation and the 2020 draft state budget.” Depositors have rushed to withdraw their money after banks reopened following a two-week shut-down at the start of the October 17 protests. Lebanese officials estimate that as much as $4 billion have been withdrawn from banks over the past weeks as the local currency loses nearly 40% of its value. The money remains in the country but reflects the deepening confidence crisis banks are facing. Local banks imposed capital control measures unseen before in the country known for its free-market economy, such as limiting withdrawals and transfers of money abroad.
Diplomats to Lebanon: Expect no aid before government formed
Associated Press/December 11/2019
Representatives from several countries, including the United States, and international financial institutions agreed on a set of principles Lebanon must meet before it can expect to receive foreign cash.
PARIS: Lebanon cannot expect to receive international aid to its battered economy until a new government undertakes serious reforms, diplomats decided at a closed-door meeting in Paris on Wednesday. The international group, led by France and the United Nations, met to discuss conditions for helping ease turmoil in Lebanon, which is facing its worst financial crisis in decades and political uncertainty amid an ongoing protest movement. Lebanese businesses and households are growing increasingly desperate as cash supplies there have dwindled.
Representatives from several countries, including the United States, and international financial institutions agreed on a set of principles Lebanon must meet before it can expect to receive foreign cash.
U.S. Assistant Secretary for Near Eastern Affairs David Schenker said attendees agreed to give technical advice to Lebanese institutions but they won’t provide the bailout that caretaker Prime Minister Saad Hariri had requested. Hariri had called on Saudi Arabia, France, Turkey, the United States, China, and Egypt to send funds to help Lebanon finance imports.
“There’s no aid package, there is no bailout,” Schenker told The Associated Press. “Lebanon is not being saved from its financial mess.”
Schenker said the group is considering sending some humanitarian aid to Lebanon to alleviate residents’ suffering, though it was unclear when or how much. French Foreign Minister Jean-Yves Le Drian said in closing remarks the group supports protesters who have taken to the streets since Oct. 17 to call for an end to corruption and the overhaul of the Lebanese political system. “The Lebanese have mobilized for many weeks to demand reforms. They must be heard,” he said. Le Drian called the “institutional void” that has existed since Hariri resigned as prime minister on Oct. 29 “worrying.”
Hariri stayed on as caretaker prime minister after politicians proved unable to form a new government. Protesters want to see a non-sectarian, technocratic government — and they want all traces of the old regime, including Hariri, out of office. As the Paris meeting got underway, dozens of protesters in Beirut and Paris rallied to call on assembled leaders not to give financial assistance until a new government comes together.
“This authority … no longer represents the Lebanese,” said a protester in Beirut reading a letter to be delivered to the French ambassador. Calling the current government corrupt, the protester said: “We don’t want (the aid) to go to waste.”Draped in Lebanese flags, protesters outside of the Foreign Ministry in Paris shouted “Revolution!” and criticized French officials for including members of the old government in Wednesday’s discussions. Several Lebanese representatives, including officials from the foreign and finance ministries and the Central Bank, attended.
Le Drian said the international group supported the creation of a “competent government” but did not take a position on what form a new government should take, nor whether Hariri should have a part in it.
Separately, U.S. Secretary of State Mike Pompeo told reporters in Washington on Wednesday that “the responsibility lies with the Lebanese people” to push for a new political order. He said the U.S. is ready to “do the things that the world can do to assist the Lebanese people getting their economy right and getting their government right.”
The U.S. has escalated its sanctions on the Iran-backed Lebanese Hezbollah group, which dominates the national unity government that Hariri headed.
Still, Schenker insisted the U.S. is not laying out conditions for which groups can be included in the new government.
“We have stuck until now with focusing on a set of principles, which is not who is the prime minister, not who is the minister of finance, not what party they’re from, not what religion they’re from — but whether they are capable of reform,” he told AP.
More than 50 countries pledged last year to give Lebanon $11 billion in aid, conditioned on Hariri implementing long-stalled reforms. Promised reforms never materialized. Hundreds of Lebanese business owners gathered Wednesday in central Beirut to protest the delay in forming a new government and threatening a collective tax strike. Organizers said most private businesses have already been unable to pay taxes and are still getting slapped with penalties. “What we are asking for is to cancel the penalties. We can’t afford paying,” said Samir Saliba, a business owner.
In recent weeks, hundreds of people have been laid off or are receiving reduced salaries, while many businesses had to shut down.
Diplomats in Paris discuss aid for battered Lebanese economy
Arab News/AP and Reuters/December 11/2019
Bteish said the situation is “worsening” and requires a quick solution
Lebanon has been swept by protests since Oct. 17
PARIS: Diplomats met behind closed doors in Paris on Wednesday to consider measures to help Lebanon as it grapples with ongoing political turmoil and its worst economic crisis in decades.
The international group, co-chaired by France and the United Nations, is weighing conditions for providing financial aid to Lebanon. Lebanese businesses and households are growing increasingly desperate as cash supplies there have dwindled.
For two months, protests have decried government mismanagement and the current political system. But even as the financial crisis deepens, protesters have denounced the Paris meeting and promised to condemn any international financial assistance to a government they see as corrupt and illegitimate.
Prime Minister Saad Hariri resigned Oct. 29, but he has stayed on as caretaker prime minister since politicians have been unable to form a new government. Protesters want to see a non-sectarian, technocratic government — and they want all traces of the old regime, including Hariri, out of office.
France and the US have made clear they support a new government in Lebanon.
Caretaker economy minister Mansour Bteish told broadcaster MTV on Wednesday that Lebanon’s economy is losing at least $70 million-$80 million a day — about half its usual income — due to the crisis that has paralyzed the country.
Bteish said the situation is “worsening” and requires a quick solution. Lebanon has been swept by protests since Oct. 17 and is now facing the worst economic strains since its 1975-1990 civil war. The pound currency has slumped and banks have enforced capital controls.
Speaking in Washington on Wednesday, US Secretary of State Mike Pompeo told reporters that “the responsibility lies with the Lebanese people” to push for a new political order. He said the US is ready to “do the things that the world can do to assist the Lebanese people getting their economy right and getting their government right.”
The US has escalated its sanctions on the Iran-backed Lebanese Hezbollah group, which dominates the national unity government that Hariri headed.
French Foreign Minister Jean-Yves Le Drian said at a press conference ahead of the Paris meeting that Lebanese authorities must “take into account the call of the street.” He urged Lebanese authorities to “form a government rapidly because any delay will aggravate the situation.”
Meanwhile, dozens of protesters in Beirut and Paris rallied Wednesday to call on the leaders meeting in France not to give financial assistance until a new government comes together.
“This authority … no longer represents the Lebanese,” said a protester in Beirut reading a letter to be delivered to the French ambassador. Calling the current government corrupt, the protester said: “We don’t want (that aid) to go to waste.”
Hariri has called on Saudi Arabia, France, Turkey, the United States, China, and Egypt to send funds to help Lebanon finance imports.
But international donors are unlikely to write a check without substantial commitments to reform. More than 50 countries pledged last year to give Lebanon $11 million in aid, conditioned on Hariri implementing long-stalled reforms. Promised reforms never materialized.
Hundreds of Lebanese business owners gathered in central Beirut protesting the delay in forming a new government and threatening a collective tax strike. Organizers said most private businesses have already been unable to pay taxes and are still getting slapped with penalties.
“What we are asking for is to cancel the penalties. We can’t afford paying,” said Samir Saliba, a business owner.
Saliba said a new campaign is aimed at educating the private sector about their rights and advocate for a blanket tax strike. “People are fed up. We don’t have anything to lose anymore.”
In the last weeks, hundreds of people have been laid off or are receiving reduced salaries, while many businesses had to shut down.
Lebanon’s international support group said Wednesday the country faces a chaotic unwinding of its economy and increased instability if it does not enact swift reforms that give international financial institutions the confidence to offer support.
“In order to halt the sharp deterioration in the economy … there is an urgent need for the adoption of a substantial, credible and comprehensive policy package of economic reforms to restore fiscal balance and financial stability,” the ISG said in a final communique after a meeting in Paris on Wednesday.
The group urged the Lebanese authorities to adopt a “reliable 2020 budget” in the first weeks after the formation of a new government and fight more rigorously against corruption. “The ISG members consider that the support from international financial institutions is pivotal to help the authorities sustain their efforts to implement the necessary economic reforms over time,” the statement added. (With AP and Reuters)
Titles For The Latest Lebanese LCCC English analysis & editorials from miscellaneous sources published on December 11-12/2019
Support group for Lebanon urges reforms/Christina Farhat/Annahar/December 11/2019
Director of Traffic Management Body detained, causes uproar/Chiri Choukeir/Annahar/December 12/2019
Lebanon’s banking sector under immense pressure, warns Pompeo/Christina Farhat/Annahar/December 11/2019
As diplomats gather behind closed doors, protesters take to streets demanding an overhaul of Lebanon’s political system./Timour Azhari/Al Jazeera/December 11/2019
The Latest Lebanese LCCC English analysis & editorials from miscellaneous sources published on December 11-12/2019
Support group for Lebanon urges reforms
Christina Farhat/Annahar/December 11/2019
The ISG has recognized the need for the adoption of a substantial, credible, and comprehensive policy package of economic reforms to address infrastructural deficiencies in the Lebanese economy.
BEIRUT: The International Support Group for Lebanon (ISG) urged Lebanese officials to implement the necessary reforms and reiterated its willingness to assist in ensuring Lebanon’s access to basic goods, as the small Mediterranean country grapples with its biggest crisis since the civil war.
The meeting of the ISG for Lebanon, chaired jointly by the Office of the United Nations Special Coordinator for Lebanon and France, is being held in Paris Wednesday, December 11th. Officials from Saudi Arabia, China, Germany, the United Arab Emirates, the United States, and the United Kingdom are attending the meeting.
According to a draft of the final statement that will be issued later Wednesday, the members of the International Support Group for Lebanon acknowledge that the current crisis puts the country at risk of increased instability and a chaotic unreeling of its economy.
The ISG urged Lebanon to adopt a substantial, credible, and comprehensive policy package of economic reforms to address infrastructural deficiencies in the Lebanese economy and reinstate financial stability, noting that these measures are necessary to answer the grievances expressed by the Lebanese people.
Frozen City Ice World Tour prepares to ignite Beirut’s Christmas spirit
“The members of the ISG acknowledge that Lebanon faces a crisis which puts the country at risk of a chaotic unwinding of its economy and of increased instability,” the ISG’s draft statement reads.
On Tuesday, Saudi Arabia’s Foreign Minister said Lebanon’s stability was “very, very important” to the kingdom.
Lebanon, a country that’s no stranger to political impasse, has been left in the hands of a caretaker government since the resignation of caretaker Prime Minister Saad Hariri. Thus, maximum pressure has been placed on Lebanon’s different stakeholders to form a new government which would, in turn, pass the 2020 budget in a timely manner, slightly relieving pressure off of the financial sector.
“The ISG urge the Lebanese authorities to take decisive action to restore the stability of the financial sector, to tackle corruption (including adoption of the anti-corruption law and judicial reform), to implement the electricity reform plan including governance-enhancing mechanism (through an independent regulatory body), and to markedly improve governance and the business environment, through the passing of procurement laws,” the draft statement reads.
The ISG also reasserted that what was agreed upon at the CEDRE conference still holds and that the Lebanese authorities should continue to commit to implementing different aspects of the agreed-upon capital investment plan in the goal of implementing long-lasting economic reform.
“The ISG members consider that the support from international financial institutions is pivotal to help the authorities sustain their efforts to implement the necessary economic reforms over time. The members of the ISG recall their willingness to support the implementation of such a set of actions, including through assistance to ensure Lebanon’s access to basic goods. They encourage the authorities to seek support from all their development partners, including international financial institutions.”
The ISG also commended the Lebanese Armed Forces and the Internal Security Forces for their work in protecting the rights of their citizens.
“The members of the ISG reiterate that the right to peaceful protest must be respected and call on all sides to act responsibly,” the draft ISG statement said.
Director of Traffic Management Body detained, causes uproar
Chiri Choukeir/Annahar/December 12/2019
After detaining several members of the traffic management body, Judge Aoun invited Salloum as a witness before detaining her as well on charges of bribery, corruption, fraud, and illicit enrichment.
BEIRUT: Mount Lebanon Prosecutor, Judge Ghana Aoun, ordered earlier today the detainment of Director General of the Traffic Management Body Hoda Salloum. After detaining several members of the traffic management body, Judge Aoun invited Salloum as a witness before detaining her as well on charges of bribery, corruption, fraud, and illicit enrichment. Critics say Aoun failed to follow the mandatory legal procedure by detaining Salloum without notifying the Ministry of Interior. Aoun argued that any suspect of illicit enrichment could be detained without notifying the Interior Ministry.
The case caused an uproar within the Future Movement, with MP Hadi Hobeich making his way to the Justice Palace in Baabda to confront Aoun, accusing her of acting as “militia instead of a Judge.”The MP continued to question the credibility of Aoun, saying that he would not “leave Baabda before the case is handled by the General Prosecutor.”The reaction of Hobeich was followed by a post on Twitter by MP Nohad Mashnouk, who expressed his outrage at the case. “Director Hoda Salloum is one of the most precise and decent employees in the Lebanese government,” he said on Twitter.
Senior Investigative Judge in Beirut, George Rizk, meanwhile, demanded the case be referred to either the Cassation or Appellate Public Prosecution Department where the case would go through the mandatory legal procedure.The Supreme Council of the Judiciary criticized Hobeich’s outburst, labeling his comments as an insult to the judiciary.
Lebanon’s banking sector under immense pressure, warns Pompeo
Christina Farhat/Annahar/December 11/2019
Pompeo called attention to the financial repercussions of the unofficial capital controls implemented by the banking sector.
BEIRUT: US Secretary of State, Mike Pompeo, cautioned of the dangers of the increasing pressure on the banking sector while taking the opportunity to denounce the Iranian backed Hezbollah party. Pompeo reinforced the International Support Group (ISG) sentiment, with the ISG meeting being held today in Paris, that the security of Lebanon is in the best interest of the international community. “I know the meeting is taking place; we’re working on it. We know that the financial situation is very serious and that the Central Bank is under real pressure,” Pompeo said in his remarks.
Pompeo called attention to the financial repercussions of the unofficial capital controls implemented by the banking sector. However, he rested the burden of banking rights, and long-term governmental reform, on the shoulders of the Lebanese people.
“The Lebanese people don’t have access to their accounts in a way that is full, and sufficient, and adequate, but the responsibility lies with the Lebanese people. The responsibility on how the government will be formed, and shaped, falls to the Lebanese people to demand Lebanese sovereignty, Lebanese prosperity, and Lebanese freedom from outside influence,” Pompeo said.
The 70th United States Secretary of State also denounced Hezbollah, verbally positioning the group as a roadblock to freedom.
“We have a designated terrorist organization, Hezbollah, and I know that the people of Lebanon understand the risk that that presents to their freedom, and to their capacity to deliver for themselves,” Pompeo said. Speaking on behalf of the United States of America, Pompeo insisted that the State Department’s stance on Hezbollah is not an American proposal, but a proposal by the people of Lebanon. This statement was made weeks after the former Ambassador of the United States of America to Lebanon, Jeffrey Feltman, was blasted for unraveling US interests during his recent congressional testimony, stating that the protests “fortunately coincide with US interests” against Hezbollah. “This is not an American proposition, this is a proposition of the Lebanese people and we do stand ready to do the things that the world can do to assist the Lebanese people getting their economy righted and their government righted,” Pompeo said.
The tension between the US and Iran is felt in Beirut where the US has intensified its sanctions on Iran-backed Hezbollah. The US took extreme measures, such as sanctioning three top Hezbollah officials earlier this year, that was more geared towards sending a symbolic message than limiting Hezbollah’s influence in practice. With Hariri’s formally accepted explanation to the West on why Hezbollah is represented in government, the distinction between “military wing” Hezbollah, and “political command” Hezbollah, out the window, the question now shifts to what is in store for Hezbollah in the future.
If a Trump re-election is in the cards, US sanctions against Hezbollah are only expected to grow more unrelenting.“We have taken more actions recently against Hezbollah than in the history of our counterterrorism program,“ Sigal P. Mandelker, undersecretary for terrorism and financial intelligence at the U.S. Treasury said at a conference in the United Arab Emirates in September of this year.
As diplomats gather behind closed doors, protesters take to streets demanding an overhaul of Lebanon’s political system.
Timour Azhari/Al Jazeera/December 11/2019
Beirut, Lebanon – As representatives from a host of nations called on Lebanon on Wednesday to form a new government and enact reforms to unlock billions of dollars in aid, protestors took to the streets of Paris and Beirut demanding an overhaul of Lebanon’s political system to pull the country out of its worst economic crisis in a generation. Members of the International Support Group for Lebanon (ISGL) co-chaired by France and the United Nations, gathered behind closed doors in Paris on Wednesday to discuss how to help Lebanon avoid a financial collapse and set it on the path of recovery.
The group, which brought together representatives from Arab Gulf nations, the United States, China, Russia, Germany, Italy, the United Kingdom and the European Union, warned in a post-meeting statement that Lebanon’s stability and security depends on the rapid formation of a government with the “capacity and credibility to implement a package of economic reforms,” and take “decisive measures.”
Lebanon has been without a government for six weeks following the resignation of Prime Minister Saad Hariri amid unprecedented nationwide protests demanding the overthrow of the country’s ruling class. The international community had pledged some $11bn in grants and so-called “soft” loans with terms very favourable to Lebanon at a conference more than a year and a half ago. But Hariri’s government failed to carry out the reforms that were a pre-condition for unlocking those funds. The group of nations said the aid pledges are still valid, but Lebanon must tackle corruption, create regulatory authorities and implement a plan to overhaul the crippled electricity sector that saps nearly a two billion dollars a year from the country’s coffers. The ISGL statement also advised Lebanon to seek the help of international financial institutions. Caretaker Labour Minister Camille Abousleiman told Al Jazeera that was “code for heading to the International Monetary Fund to discuss a potential rescue package.”Lebanon must also restore confidence in its monetary system, the ISGL said.
Lebanon relies heavily on remittances for foreign exchange. But transfers of money from abroad have dried up, leading to a shortage of dollars that in turn has hammered the Lebanese pound, which has lost roughly 30 percent of its value on the black market.Banks have effectively imposed capital controls limiting the amount of US dollars customers can withdraw or transfer out of the country. Citizens are struggling to pay their bills and business are laying off workers and cutting salaries. They have basically told us, ‘we still have you in mind, but please for heaven’s sake let us help you by you helping yourselves’
YASSINE JABER, MEMBER OF PARLIAMENT, LEBANON
Growing signs of collapse
MP Yassine Jaber, the head of the Lebanese parliament’s foreign affairs committee said Wednesday’s conference delivered a clear message. “They have basically told us, ‘we still have you in mind, but please, for heaven’s sake, let us help you by you helping yourselves,'” Jaber told Al Jazeera.
Jaber added that Lebanon is at a critical point where its politicians must regain the confidence of the people, bank depositors, investors and the international community, or the “uprising will become a revolution of the hungry and the unemployed, and they won’t leave anything untouched.”
Signs of such a scenario are surfacing. A standard bag of Arabic bread, which sells for 1,500 pounds – about $0.70 at black market rates- was reduced from one kilo to 900 grammes this week. The union of bakery owners said the move was necessary because the US dollar shortage has made it difficult to import wheat. Abousleiman noted more than 70 businesses had asked to lay off all their employees in the past 10 days alone. Owners of private sector companies and their employees Wednesday held a large gathering in downtown Beirut where they warned 200,000 jobs could be lost by the end of next year if the situation remained unchanged.
Meanwhile, caretaker Economy Minister Mansour Bteich said during an interview with broadcaster MTV on Wednesday that the wave of unrest has caused the government to lose between $70m – $80m a day in revenue- or roughly half of its pre-unrest take.
Lebanon is already heavily indebted with the third highest debt to GDP ratio in the world. While the 2019 budget had forecast a deficit of 7.6 percent of GDP, state revenues in the past three months have been 40 percent less than forecast, meaning the deficit will be “much larger than expected”, caretaker Finance Minister Ali Hasan Khalil said on Wednesday. Khalil said the government would pay state salaries this month as scheduled, “despite real difficulties in financing the state”.Everyone always says that we need politicians like Hariri because of their international relations to get us money. But what use is it when they steal all of the money that they bring from outside?
SAMER, LEBANESE PROTESTER
‘Stop funding our politicians’
As the ISGL conference was underway on Wednesday, small demonstrations were held both in Paris and Lebanon. Protesters called on the international community to hold Lebanese politicians accountable for losing hundreds of millions of dollars over the last decade to what many feel was poor management and crony capitalism. In the years before the 2018 aid conference, three donor conferences were held in Paris during which hundreds of millions of dollars in grants and soft loans were pledged and eventually provided to Lebanon by nations and international organizations.
Protesters allege these funds were mismanaged or effectively stolen through shady deals.
“Our politicians are corrupt,” read a sign held by a protester in Paris, near the site of the conference. In Beirut at the French Embassy, protesters said the international community was inadvertently propping up politicians that thousands of Lebanese have sought to remove during the nationwide uprising.
Despite resigning at the behest of protestors, Hariri appears poised to return to power, with many parties arguing he alone has the international standing to steer Lebanon through the crisis it faces. “Everyone always says that we need politicians like Hariri because of their international relations to get us money. But what use is it when they steal all of the money that they bring from outside?” Samer, who asked to be identified only by his first name, told Al Jazeera from outside the embassy.
“We tell the embassy and the entire international community very clearly: Stop funding our politicians.”
The system is the problem
Rather than rely on the old model of international support for Lebanon, protesters called for the formation of a government of independent experts to shepherd the country through the economic and financial crisis, and hold early elections based on a new, non-sectarian law.
They blame the post-civil war system of power-sharing between sectarian leaders for rampant mismanagement and corruption in the country. Jaber, who caucuses in a bloc with one of those sectarian parties but is not a member of the party itself, said that it was true the system was flawed and that the constitution needed to be revisited. But for him addressing the immediate crisis takes precedent. “If a patient comes to the emergency room bleeding heavily and he also has a temperature, cholesterol and diabetes, you start with stabilizing the patient and stopping the blood flow so you can then treat the other issues,” he said.
“Right now we’re going downhill so fast, and there are no brakes.”
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