Khazen

Aoun: Lebanese economy in recession

Lebanese President Michel Aoun in Beirut, Lebanon on 24 October 2019 [Presidency of Lebanon/Anadolu Agency]

by middleeastmonitor.com — Lebanese President Michel Aoun announced today that his country has entered an unprecedented crisis characterised by an economic recession, a severe shortage of foreign currencies, high unemployment and poverty rates and inflation. Aoun’s remarks came in a speech he delivered before members of the International Support Group for Lebanon (ISGL), during their meeting at the Presidential Palace in east Beirut, in the presence of Prime Minister Hassan Diab. The Lebanese president stated: “For these reasons, and to stop the depletion of reserves, the state decided to suspend the repayment of Eurobonds, and the appointment of two international financial and legal consultants to act as government counsellors.”

The ISGL, which was founded in 2013, announced at its meeting in Paris last year that the international community is willing to assist Lebanon in overcoming the ongoing financial crisis, provided that an effective, credible and capable government is established to fight corruption. “We heavily rely on the $11 billion aid pledge we received at the CEDRE conference in Paris, which will mainly be devoted to investment in infrastructure projects,” Aoun said. He added: “Today we are facing all these crises and repercussions, and we welcome any assistance from the friends of Lebanon. (…) We are working to prepare a comprehensive economic and financial plan to mend the economy’s imbalances.”

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UK Prime Minister Boris Johnson is in intensive care as his coronavirus symptoms worse

by vox.com — Jen Kirby — British Prime Minister Boris Johnson has been moved to an intensive care unit after his coronavirus symptoms worsened. “Over the course of this afternoon, the condition of the prime minister has worsened and, on the advice of his medical team, he has been moved to the intensive care unit at the hospital,” a spokesperson for the prime minister’s office said in a statement on Monday. This is a troubling development for the leader of the United Kingdom, who confirmed on March 27 that he had tested positive for the coronavirus. At the time, Johnson, who is 55, said he had “mild symptoms,” including a fever and persistent cough. He said he would continue to run the country in self-isolation. In the days since his initial diagnosis, however, Johnson’s condition has apparently worsened. On Sunday evening, the prime minister was admitted to St. Thomas’s Hospital in London for treatment, shortly after Queen Elizabeth II delivered a rare address to the country about the coronavirus crisis. Less than 24 hours later, his spokesperson said he had been admitted to the intensive care unit. According to reports, Johnson is still conscious, but he’s been moved to the ICU as a precaution, in case he requires the aid of a ventilator. ITV reporter Robert Peston said that Johnson required the aid of oxygen on Monday, but the prime minister is not currently on a ventilator, as of Monday 5 pm ET. Still, this is a startling development, as the leader of the United Kingdom is now dealing with the same debilitating virus that is causing an unprecedented national emergency. Johnson’s condition adds more uncertainty to a national crisis The UK has been under strict stay-at-home orders since March 23.

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Lebanon issues order to curb traffic as expats fly home

Lebanese nationals returned from Saudi Arabia board buses upon their arrival at the Beirut international airport (AFP Photo/ANWAR AMRO)

by thenational.ae — The Lebanese government further restricted travel in the country on Sunday, setting strict rules about the time and days that vehicles can be on the road in a bid to stem the rising number of coronavirus cases. In a decree on Sunday, the Interior Ministry laid out rules when cars, public vehicles and lorries can be on the road based on their number plates. Vehicles with plate numbers that end with an odd number are allowed to travel on Mondays, Wednesdays and Fridays while those with plate numbers that end with an even number (including zero) are allowed to travel on only Tuesdays, Thursdays and Saturdays. No one is allowed to travel on a Sunday.

The only exemptions are for essential workers – including pharmacists, doctors and nurses, the Red Cross and the media – as well as security and diplomatic traffic. Deliveries for vital sectors – including meat, flour, tobacco, water, milk, medical and fuel – will also be exempt. The Lebanese government announced a daily curfew to try to stop the spread of the disease, as the number rose again on Sunday by seven, bringing the national total to 527. There was also a death, bringing the toll to 18. Interior Minister Mohammad Fahmi said the new measures were put in place because of a “large number of citizens not abiding by the quarantine measures and the curbs on movement”. The first flight bringing home Lebanese nationals stranded overseas landed in Beirut on Sunday afternoon from Saudi Arabia. Lebanese media quoted the ambassador to Saudi Arabia, Fawzi Kabbara, saying that 1,500 people in the kingdom wanted to return to Beirut.

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Lebanon divided over face masks in virus battle

by arabnews.com — NAJIA HOUSSARI — BEIRUT: Lebanon is divided over the use of masks in the battle against coronavirus disease (COVID-19), with the government and medical professionals at odds over how useful they are in restricting the spread of the disease. The country has reported 17 deaths and 520 confirmed cases, an increase of 12 new cases in 24 hours. Last month, on March 15, the government imposed steps to check the spread of the virus. Measures included social distancing and wearing face masks and gloves. Doctors in TV interviews have, however, discouraged people from wearing face masks while outside because it sent the wrong message about safety and hand hygiene. “A customer would buy an average of seven masks a week in light of the circular that imposed wearing masks when going to a supermarket, bank or while driving,” pharmacist Robert Tenn told Arab News. He said the rise in the US dollar against Lebanon’s currency had led to a significant rise in the price of masks. “A box containing 50 masks is being sold for LBP100,000 ($66) when its earlier price never exceeded LBP15,000. We are referring to the regular medical mask and not the N95K, which is firmer and more effective in protecting against coronavirus and other viruses if used correctly. But nothing is a substitute for washing hands.” Lebanon was back to importing its needs from China after China resumed its exports, he added.

Architect Edgard Mekssas uses 3D printers to produce these masks. (Supplied) “There are new types of locally manufactured masks in Lebanon, and these are cheaper than the imported ones, but they lack medical standards, so I do not buy them to sell them to people. These are the product of personal efforts, and some are made of cloth that can be penetrated by viruses.” Many types of face masks have been seen in Lebanon, in different colors and designs such as khaki to suit military uniforms and black for security forces. There are also masks with logos of political parties. A Nabatiyeh-based media man, Samer Wehbe, said that the masks bearing party slogans are available in the market. He said the Amal movement is promoting green-colored masks, which is the color of the movement. “They may also use these masks with their slogan later,” he added. A resident of the southern suburb, Hassan, said: “There are street vendors offering colored masks at low prices but they are of very poor quality.” He did not rule out the possibility of political parties using their slogans on locally manufactured masks. “But people feel a bit shy using such masks publicly,” he added. The Internal Security Forces Directorate on Saturday tweeted a video showing inmates at Roumieh Central Prison making medical masks to be used by security forces and prisoners when needed. Others have also begun making masks.

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Nasrallah tries to pin the blame for the system’s failure on banks

Clients wearing protective masks line up to use ATM machines outside a closed bank in Beirut, Lebanon. (AP)

by Makram Rabah — thearabweekly.com/ — In the first year of law school, students are taught that “a plaintiff will be unable to pursue legal remedy if it arises in connection with his own illegal act.” This legal doctrine, known as ex turpi causa non oritur actio, prevents someone from benefiting from wickedness and illegality, which Lebanon’s political elite have made fortunes from doing. This simple legal doctrine comes to mind when the Lebanese political elite try to justify the abysmal state of affairs and the economic collapse that they cheekily insist the Lebanese banking sector take full responsibility for. Ironically, this same banking sector has long been praised by the same political class as being the engine of Lebanon’s economy and a living testament to the myth of the country’s ingenuity and entrepreneurship — until it collapsed, that is.

The intention to scapegoat Lebanese banks is apparent from the rhetoric of the political elite, who always emphasise that banks have made millions of dollars and are thus compelled to give back to the country. In his latest televised speech, Hezbollah Secretary-General Hassan Nasrallah unleashed a new violent attack on the Lebanese banking sector with the intention or protecting small depositors, or so he claimed. Nasrallah’s sermon-style lectures have taken a clearly threatening tone. Most recently, he tacitly addressed bank owners themselves, saying: “How can we appeal to the humanity of these bank owners? I wish you [the public] can help me… figure how to address them.” “I do not want to open the many files [we have on] how they made their fortunes, although we might have to do so at a later time,” Nasrallah added.

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Lebanon eases currency withdrawals in step towards liraficaition

A decision by Lebanon's central bank could soon make it possible for people with accounts containing $3,000 or less to withdraw their money in Lebanese pounds at the market rate, which currently stands at about 2,800 Lebanese pounds to the United States dollar [File: Mohamed Azakir/ Reuters]

Timour Azhari — Al Jazeera — BEIRUT, LEBANON – Lebanon’s Central Bank on Friday said depositors with small dollar-denominated accounts would soon be able to withdraw – and withdraw in local currency – money that has been trapped in the Lebanese banking system for almost half a year. The cash will be disbursed at a market rate set daily on an online platform. A senior banking source told Al Jazeera that the platform is expected to be ready within a week to 10 days, at which point the new measures may go into effect. The decision was made public in a circular released by Lebanon’s central bank. It will allow people with accounts containing $3,000 or less to withdraw their money in Lebanese pounds at the market rate, which is substantially higher than the official rate. The market rate on Friday stood at 2,800 Lebanese pounds to the United States dollar, compared to the official rate of 1,500 Lebanese pounds to the dollar, according to a daily survey of exchange dealers across the country, published online.

Lebanon’s currency has been pegged to the dollar at 1,500 Lebanese pounds for 23 years, but began depreciating on parallel markets last summer due to unsustainable financial policies that cracked under an acute dollar shortage. The dollar shortage was the result of a decade-long economic slump and a slowdown in remittances from Lebanon’s large diaspora. Suffering from a dollar liquidity issue, banks imposed increasingly harsh capital controls in November. Depositors had only been allowed to withdraw a few hundred dollars per month from dollar-denominated accounts, forcing many to withdraw cash in Lebanese pounds at the official rate, which was substantially less than the market rate and thereby caused them to incur significant losses. The decision also allows people with accounts in local currency under five million Lebanese pounds ($3,330, at the official rate) to convert their money into dollars at the official rate and then withdraw it in Lebanese pounds at the higher parallel rate. For example, a depositor with three million Lebanese pounds in his or her account would be able to convert it to $2,000 and then convert it back to Lebanese pounds at the market rate of 2,800 Lebanese pounds to the US dollar, which would equal 5.6 million Lebanese pounds. This means the account holder will effectively double his money.

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Hezbollah’s coronavirus response plan is a political tool, not a cover-up

Hezbollah media tour of their anti- coronavirus campaign in Lebanon 31 March 2020 [Sunniva Rose/Twitter]

by middleeastmonitor.com — In recent weeks, accusations have circulated that Hezbollah’s coronavirus response plan is a cover-up for a huge number of unreported COVID-19 cases in Lebanon. Indeed, the Lebanese government, at the Iranian-backed militia group’s urging, continued to allow commercial flights from Iran for more than three weeks after the first confirmed coronavirus case was reported in Beirut on 20 February. Despite the first case, and several subsequent ones originating from the Islamic Republic, which has the most coronavirus cases in the region. Though flights to and from Iran were officially banned from 11 March and Beirut’s Rafic Hariri International Airport was shuttered to all but essential movements of cargo, UNIFIL and diplomatic missions from 18 March, on 21 March, a weekly scheduled Qatar Airways flight from Tehran to Beirut arrived as normal. Lebanese authorities claimed the flight carried cargo. Yet, the continuation of cross-border movement with the region’s worst infected nation, and the origin of Lebanon’s first cases, while nearby states, such as Jordan, took draconian measures to contain the disease, has stoked accusations of a cover-up.

A recent Guardian article noted that “parts of Lebanon and Iraq in particular are likely to be holding thousands more sufferers”, the report cites Lebanese officials who allege that Hezbollah has quarantined several southern towns and villages to hide the extent of the outbreak. A policy analysis from Hanin Ghaddar at the Washington Institute lends credence to this narrative and alleges that the militia group’s health plan is a recognition that it can no longer hide the extent of the coronavirus outbreak. Arguably, it is probable that Lebanon has thousands more cases of coronavirus than reported, but not that Hezbollah is hiding the extent of the outbreak. Official numbers the world over are skewed by a lack of testing, and government advice to corona-suggestive patients to stay home, despite symptoms, to avoid overwhelming healthcare services. These cases, and those that show no symptoms at all – a study in Iceland showed that half of coronavirus carriers show no symptoms – are not included in any official statistics, so it is not just Hezbollah or even Lebanon that is failing to reveal the real number of cases.

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Lebanese hotline set up to handle surge in COVID-19 domestic violence cases

by arabnews.com — NAJIA HOUSSARI —BEIRUT: Lebanese authorities have set up a dedicated domestic violence hotline to deal with a surge in cases of physical, sexual and psychological abuse since the introduction of home quarantine over the coronavirus disease (COVID-19). According to the National Commission for Lebanese Women (NCLW), the majority of reported attacks have been against women and girls. An NCLW spokesperson said: “The psychological pressures caused by the home quarantine in these circumstances (the COVID-19 pandemic), in addition to the economic pressures, have contributed to an increase of physically, morally, psychologically, emotionally and sexually abusive practices inflicted by violent individuals on abused women and girls.” The NCLW, in cooperation with Lebanon’s Internal Security Forces (ISF), has established a special phoneline linked to the ISF’s operations room along with a website for abuse victims and witnesses to report incidents of domestic violence.

Lt. Col. Joseph Msallam, head of the ISF’s public relations division, told Arab News: “March has seen a rise in the number of domestic violence complaints, which reached 48 cases. We quickly move to stop the perpetrators by order of the judicial authorities. “People are losing their temper, and we have seen an increase in quarrels that occur for ridiculous reasons such as car parking. There was a case recorded in a southern suburb of Beirut a few days ago that developed into a murder.” The number of confirmed COVID-19 cases in Lebanon on Thursday rose by 15 to 494, with 16 deaths and 43 recoveries. Three patients were reported to be in a critical condition and over a period of 24 hours, 539 lab tests were carried out on people suspected of having contracted the virus.

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Lebanese stranded abroad amid coronavirus expected to pay exorbitant fees for flights home

by middleeasteye.net — By Kareem Chehayeb — Lebanese nationals stranded abroad amid the coronavirus pandemic may have to pay exorbitant prices to return home, with economy tickets costing as much as $1,800, a diplomatic source told Middle East Eye. According to another source close to the country’s national carrier, Middle East Airlines, flights are expected to commence on 5 April and are priced in US dollars, ranging from $650-1,800 in economy class, and $1,300-3,900 in business. MEE spoke to more than 15 Lebanese nationals who had applied to return home since the country imposed a travel ban on 15 March. Several said they were left to fend for themselves without proper guidance or assistance from relevant authorities.

With the Lebanese currency, the lira, losing almost 50 percent of its value in recent months, a decision by the country’s banks to restrict US dollar withdrawals and transfers abroad further compounded their problems. In an attempt to address the confusion, Information Minister Manal Abdel Samad told reporters on Wednesday that Lebanon would begin “three or four flights” from “three or four countries” on 5 April, however, she did not mention pricing. According to MEE’s source, the flights will repatriate nationals from Nigeria, the Ivory Coast, Saudi Arabia, and the United Arab Emirates. None of the nationals MEE spoke to were notified that they would have to pay for their flights home.

Hesitant to repatriate nationals

Lebanon’s fragile government has been hesitant to implement a repatriation plan, fearing further cases of the coronavirus. However, the cabinet was spurred into action following political pressure from several political leaders, including Speaker Nabih Berri, who threatened to suspend his party’s’ participation in the government if the stranded nationals were not brought home. Lebanon closed its international airport on 15 March, and has since renewed that lockdown for another two weeks, extending it into mid-April. Many of the Lebanese citizens interviewed by MEE said they were unable to get flights during a four-day grace period after the initial closure or did not anticipate the situation getting worse in their respective countries. According to local French newspaper L’Orient Le Jour, about 22,000 Lebanese had submitted forms on the Foreign Ministry’s website over the past 14 days to return to Lebanon.

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