Khazen

Lebanon’s ‘two crises’: coronavirus and financial collapse

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By REBECCA COLLARD — Goods flew off the shelves at a supermarket Wednesday in Beirut as Lebanon announced new travel restrictions in response to the novel coronavirus. By Thursday, supermarket shelves were restocked, but the country faces a unique problem in the midst of the pandemic. Almost everything Lebanon consumes is imported — and COVID-19 has struck as Lebanon slides deeper into a dire financial crisis brought on by government corruption and mismanagement. Since October, protesters have been in the streets demanding a new government and an end to the country’s sectarian political system. The Lebanese lira has lost around 40% of its value against the US dollar in recent months. That means everything is going up in price, especially imported goods — which comprises most food, medicine and medical supplies.

At a supermarket in Beirut, Dr. Abraham Hadid, an orthopedic surgeon, pushed a shopping cart filled with canned tuna, corn, soda water and instant coffee. “I’m buying everything I need for a long time,” he said, wearing a face mask and plastic gloves. “I don’t want to come back here because of corona.” Hadid says Lebanon has good doctors and a relatively strong health system, but that system is strained by the economic crisis. That will hurt the country’s ability to respond to the outbreak of COVID-19. As of Friday there were 77 confirmed cases and three deaths in Lebanon, and the numbers are rising. “All the equipment we need, needles … serum, the prices of everything are increasing,” Hadid said. “We have two crises so close.”

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Trump Announces National Emergency; Pelosi Touts Aid Deal but Late Issues Hold Up Passage

Trump Announces National Emergency; Pelosi Touts Aid Deal but Late Issues Hold Up Passage

by newsmax.com — President Donald Trump on Friday declared the coronavirus pandemic a national emergency in order to free up more money and resources. But he denied any responsibility for delays in making testing available for the new virus, whose spread has roiled markets and disrupted the lives of everyday Americans. Speaking from the Rose Garden, Trump said, “I am officially declaring a national emergency,” unleashing as much as $50 billion for state and local governments to respond to the outbreak. Trump also announced a range of executive actions, including a new public-private partnership to expand coronavirus testing capabilities with drive-through locations, as his administration has come under fire for being too slow in making the test available. Trump said, “I don’t take responsibility at all” for the slow rollout of testing.

Late Friday, House Speaker Nancy Pelosi announced a deal with the Trump administration for an aid package from Congress that would provide free tests, sick pay for workers and bolster food programs. “We are proud to have reached an agreement with the Administration to resolve outstanding challenges, and now will soon pass the Families First Coronavirus Response Act,” Pelosi announced in a letter to colleagues. The House was poised to vote. However, as of 8:30 p.m. ET the vote had not yet occurred. According to a Reuters news alert, House Majority Leader Steny Hoyer said there were unresolved issues between the administration and lawmakers on the response bill, though Pelosi had thought there was a deal at hand. A few minutes later, though, another alert from Reuters said Trump had indicated he was fully supportive of H.R. 6201, the Families First Coronavirus Response Act, “which will be voted on in the House this evening.” No further details were available at the time of publication.

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Salameh: Priority for Transfers to Buy Equipment to Combat Virus

by Naharnet –– Central bank governor Riad Salameh instructed Lebanese banks on Friday to prioritize transfers for the purchase of medical supplies and equipment to combat coronavirus, the National News Agency reported on Friday. The disease has infected 77 individuals in Lebanon so far according to the health ministry. On Friday, an employee at the […]

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Will Lebanon’s Eurobond default spur much-needed reform?

by middle-east-online.com — TUNIS – Lebanon has defaulted on its international debts for the first time. Through civil war and social and political turmoil, Lebanon had always met its economic obligations. However, convulsed by a long-foreshadowed currency crisis and battered by the spread of coronavirus, Lebanese Prime Minister Hassan Diab said in a televised address […]

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79-year-old man becomes third victim in Lebanon; 15 nurses quarantined

by NAJIA HOUSSARI — arabnews — BEIRUT: Lebanon has reported its third death from the coronavirus. A 79-year-old man with cancer died on Wednesday while being treated in a hospital in Jbeil. He was sharing the room with a man, whose infection was not yet been confirmed. Doctors’ syndicate chief Sharaf Abu Sharaf said: “There are 15 nurses and two doctors being quarantined at home who have not showed any symptoms.” The streets have been almost empty as all entertainment and recreational facilities in the country have shut. The Lebanese Cabinet has doubled internet speed and capacity for Ogero users until the end of April, to encourage them to work and study at home. Mohammed, a taxi driver in Beirut, told Arab News: “People have stopped going to malls and Beirut souks are empty. They are even refusing to take a cab and are walking instead.” Salam, a saleswoman in Sodeco, said: “Buying clothes is no longer a priority as people are afraid of the coronavirus. We are making sure to disinfect and sterilize the shop everyday but it seems like we will be closing soon.”

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Exclusive: Lebanese crisis plan ready in weeks, will meet IMF recommendations – minister

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By Tom Perry and Ellen Francis BEIRUT (Reuters) – Lebanon’s plan to tackle a financial and economic crisis will meet IMF recommendations and will be ready in weeks, the finance minister said on Thursday, adding that any recourse to an IMF program must be politically agreed and its terms should not cause suffering. Speaking days after the heavily indebted state declared it could not meet coming debt payments, Finance Minister Ghazi Wazni also told Reuters the official exchange rate of the Lebanese pound would be maintained for the “foreseeable future”, saying this helped control inflation among other factors. The plan being drawn up by Prime Minister Hassan Diab’s government will form the cornerstone of efforts to pull Lebanon out of the worst financial crisis since independence in 1943. It will cover banking, financial and other economic reforms.

Lebanon has so far requested technical assistance from the IMF but not financial aid that would typically come as part of a program of reforms. A team of IMF experts visited Lebanon last month. IMF spokesman Gerry Rice, speaking before Wazni’s remarks, underscored the need for Lebanon to draft a comprehensive plan. “Given the severity of economic conditions in Lebanon, it’s important that the government designs and implements properly a comprehensive package of reforms to effectively address the economic challenges and improve Lebanon’s economic prospects,” he said. Wazni said the IMF was ready to send experts back to Lebanon once the plan was ready. The government’s plan would meet “the recommendations of the IMF” and include a plan that Beirut is drawing up with the World Bank. Wazni said Lebanon was in need of $25 billion to $30 billion of assistance over the next five years to get out of the crisis. “Lebanon welcomes all international financial assistance without exceptions. But when it comes to the IMF, this depends on several matters: that the understanding with the IMF – if Lebanon resorts to it – … does not negatively affect the political situation in Lebanon,” Wazni said.

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Lebanon to ban flights from 11 coronavirus-hit countries

Prime Minister Hassan Diab's announcement came as Lebanon registered its second death from coronavirus [File: Dalati/Nohra/Reuters]

by thenational.ae —Prime Minister Hassan Diab on Wednesday announced that Lebanon would be halting flights to and from several countries to try to curb the spread of coronavirus, moments before the World Health Organisation officially declared it a pandemic. “All air, sea and land travel will be stopped to and from the following countries: Italy, South Korea, Iran, and China,” Mr Diab said, without specifying when flights would be suspended. Lebanon will also suspend flights “from countries that have witnessed an important spread of the virus: France, Egypt, Syria, Iraq, Germany, Spain and Britain, by air, land or sea,” he said.

By Timour Azhari Al jazeera– Beirut – Lebanon will ban all travel to and from 11 countries that have witnessed significant outbreaks of the coronavirus, including an immediate ban on Italy, Iran, China and South Korea. Authorities will give a four-day grace period to Lebanese citizens, and their families who are seeking to return to Lebanon from France, Germany, Spain, the United Kingdom, Iraq, Egypt and Syria before also banning all travel to and from those countries, Prime Minister Hassan Diab announced on Wednesday.

The ban includes travel by land, sea and air. Diab’s announcement at a news conference came as Lebanon registered its second death from the coronavirus on Sunday, – a man in his 50s who reportedly had pre-existing conditions – while the total number of infections rose to 61. Conversely, Lebanon’s first registered coronavirus patient, a woman who returned from Iran in late February, was announced to be entirely free of the virus. The global pandemic has seen more than 122,000 people infected, with deaths nearing 4,500. Many countries in the Middle East have taken similar steps of banning travel, including Saudi Arabia, which has banned flights to and from Lebanon. While Diab stopped short of announcing a state of emergency, he asked local authorities to prevent all large gatherings of people. Bars, nightclubs and exhibition centres were already ordered to close over the weekend until March 15, while schools and universities have been shuttered since the beginning of March. Diab also called on businesses and public institutions to work with the minimum required number of employees needed to maintain productivity.

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In the bitter struggle for Saudi rule, Prince Mohammed bin Salman has struck first

Mohammed bin Salman

By Madawi al-Rasheed– All is not well in the House of Saud. On 7 March, Mohammed bin Salman, the young crown prince and future king of Saudi Arabia, boldly dispatched his masked security personnel to bring two of Saudi’s most senior princes, Ahmed bin Abdul Aziz and Muhammad bin Nayef, to the palace after a hunting trip in the desert. It’s still unclear whether they have been detained for short-term interrogations or to be imprisoned. What’s certain is that Prince Mohammed’s decision was a preemptive strike to intimidate those who have dared question his leadership style from inside the royal household. Although Mohammed is the crown prince, he plays the role of king. He remains in control of all economic, political, social and foreign relations, and eclipses his father, King Salman, as unofficial ruler of Saudi Arabia. The arrests were ordered after the royal court was passed details of an alleged plot to undermine Prince Mohammed’s ascendance to the throne. Among the two princes he arrested, Ahmed is the most eligible to become king – he is the only remaining brother of the incumbent King Salman and would have been first in line had his brother not promoted his own heir, much to Ahmed’s chagrin.

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Lebanon Banks, Prosecutor Agree Rules for Easing Deposit Restrictions

by aawsat.com — Lebanon’s public prosecutor has agreed with commercial banks a set of rules aimed at protecting the rights of depositors, state news agency NNA reported on Tuesday, potentially easing restrictions on deposits amid a dollar shortage. Lebanese banks, fearing capital flight and grappling with an acute hard currency crunch, have imposed tight controls on withdrawals and transfers abroad, drawing outrage from depositors unable to access their savings. The agreement, which appears to be an attempt in part to standardize rules across the sector, states banks must transfer foreign currency abroad for payment of school fees, medical costs, taxes and “all that is necessary,” as well as for imports of medical supplies, foodstuffs not produced in Lebanon, and goods deemed critical by the central bank, NNA reported. These include lenders allowing depositors to withdraw up to 25 million Lebanese pounds a month (around $16,500 under the official exchange rate). Other measures include allowing transfers abroad in hard currency for education fees, medical bills, tax purposes, “and everything else necessary,” NNA said. Banks would not be allowed to withhold any part of money freshly transferred into a Lebanese account.

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Lebanon’s Government Is Accused Of Swarming WhatsApp To Catch Protesters

npr.org — DEBORAH AMOS — In Lebanon, cyberspace is the new battle ground between protesters and the security services that have increased measures to curb dissent, intimidating and arresting government critics for online speech. Since October, Lebanese citizens have gathered to protest around the country, uniting across party and sectarian lines against an entrenched political oligarchy that protesters say has made fortunes mostly from government funds at the expense of the country. The massive outpouring was sparked by a proposed tax on calls made through Internet services such as WhatsApp. The government abandoned the tax after protesters paralyzed the country, forcing banks and schools to close. Now, the authorities use WhatsApp to identify protest leaders and arrest them, activists and lawyers say. In the first months of civil disobedience, Lebanon’s mainstream media outlets — largely owned by the state, political parties or politicians — downplayed the unrest, ignored it or suggested the protests were exploited by regional and international enemies. Activists turned to social media platforms to get out their message. They organized and shared updates on WhatsApp, streamed protests live on Twitter and highlighted police abuse on Instagram. New podcasts documenting corruption also launched with the protest movement.

New cat-and-mouse game

Many Lebanese use WhatsApp, a Facebook-owned cellphone app that allows users to send each other encrypted text and voice messages as well as make calls for free, in a country where ordinary phone calls are expensive. Many demonstrators have used WhatsApp chat groups to criticize the government, call protesters to the streets and share videos of arrests and injuries from rubber bullets. The social media and WhatsApp activities also leave activists vulnerable to surveillance by the Internal Security Forces’ Cybercrimes Bureau. Mohamad Najem, executive director of the Social Media Exchange, a Beirut-based digital rights group, says there is a “different kind of cat-and-mouse” game. “Social media is being used as a tool to identify protesters and to know who they are and their networks and all that,” he says. Lebanon’s print media, its newspapers and magazines, are protected by laws that are the envy of the Arab world, but comments posted to social media have little protection, says Najem. “The law is bad, it’s a lot of gray area. It really depends on the mood of the general prosecutor, what he’s doing, what kind of whiskey he is drinking at night, who is talking to him,” he says. “All these issues are really how the decisions processes are made in this country.”

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