By HUSSAIN ABDUL-HUSSAIN — asiatimes.com — Lebanon is in a state of severe economic stress. The price of almost every good has soared beyond the ability of many citizens. Legions are out of work. Businesses are locked in a dire existential struggle. There is perhaps no more accurate judgment on the state of an economy than the currency market. In this respect, although the Lebanese pound remains officially – fantastically, one might add – pegged at roughly 1,500 to the US dollar, in truth it takes close to 9,000 pounds to exchange for a dollar. That is an 83% devaluation in the market’s faith in the economy. Many Lebanese, however, are unaware that their national crisis is in fact of Lebanon’s own making. Mostly, they blame an American embargo – one that does not really exist. This misplacement of blame blinds the country to the real cause of its malaise: Hezbollah. Except for sanctions imposed by the US Treasury Department’s anti-terrorism arm, the Office of Foreign Assets Control, on a few Lebanese entities and individuals connected to Hezbollah – the self-claimed “party of God” – there is no financial restriction on the state of Lebanon or any of great substance against its institutions, public or private.

But even without being under sanctions, foreign direct investment – usually the engine of economic growth – shies away from Lebanon. Foreign investors are simply unwilling to bring their money into a country that lives in a state of perpetual war, with Hezbollah currently involved in regional entanglements – in Syria, Yemen and Iraq – or threatening to go to war with Israel. When the Friends of Lebanon group convened an international donor conference two years ago that came to be known as Cedre, it pledged a rescue package worth US$11 billion. The only conditions were that Beirut should get its act together and eradicate corruption and privatize state utilities – especially the highly inefficient Electricité du Liban.

by middleeasteye.net — Kareem Chehayeb — Lebanon’s iconic Casino du Liban was once where the richest of the region came to play. Standing on the cliffs above the Mediterranean, 20 kilometres north of Beirut, it has been dubbed as the Monte Carlo of the Middle East. Though much-loved and revered as a monument to Lebanon’s better days, the casino, which is part-owned by the state, could find itself soon out of the public’s hands. Lebanon’s economy is in freefall. The currency has lost some 80 percent of its value in recent months and officials are eyeing ways to raise liquidity, including selling off some of the state’s most prized assets, such as the casino. Like the rest of the country, Casino du Liban is emerging from a coronavirus lockdown. A disinfectant booth greets visitors at the entrance, and men in jumpsuits busy themselves outside, preparing for another round of sanitisation.

Portraits of former Lebanese heads of states and international celebrities in the entrance hall put the casino front and centre of the country and region’s history. Lebanon’s casino has hosted a slew of high-ranking officials and celebrities, including the shahs of Iran, King Abdullah of Jordan, and even Osama bin Laden. It was considered “impressive culturally, but also socially”, Mona Fawaz, professor of urban studies and planning at the American University of Beirut, told MEE. But aside from flaunting social status and enjoying cultural events, it was also a place to do business and “meet important people”, she said. In fact, Fawaz said, business networking at Casino du Liban was integral to commence major development projects in Lebanon, like in Hay El-Sellom, the country’s largest informal settlement just south of Beirut. “Back in the 1950s, [the developer] knew he had to go there to meet important people to get services and other supplies to the neighbourhood,” Fawaz says. “That’s how he met all these important people to bring in asphalt and other things to that neighbourhood.” Nothing of the sort has been possible in recent months, however. Coronavirus forced an 80-day closure, and though scores of mask-wearing men and women can be seen playing the slot machines, the casino’s restaurants are still shut, as are other gaming areas.

by naharnet –– Maronite Patriarch Beshara al-Rahi on Sunday called on President Michel Aoun to break what he called the siege that is imposed on Lebanese “legitimacy” and the country’s “free national decision.” In his Sunday Mass sermon, al-Rahi also urged friendly nations to “scramble to rescue Lebanon, the same as they used to do […]

By: Agnes Helou — defensenews.com — BEIRUT — The Lebanese government plans to sell five outdated Air Force Hawker Hunter fighter jets and three Sikorsky S-61 helicopters in an attempt to reallocate the service’s resources, a government source has confirmed to Defense News. “Lebanon has been in negotiations with many suppliers to procure primary training aircraft, on top of which Pakistan might supply Super Mushshak trainers to the Air Force, but the deal hasn’t been sealed yet,” a Lebanese official told Defense News on condition of anonymity. Lebanon has seven aging Hawker Hunters, five of which have been nonoperational since 1990, and the other two out of service since 2011. Repairing them has proven difficult due to a lack of spare parts. Furthermore, the aircraft are equipped with outdated weapons systems that have poor accuracy when compared other technology in service with the Air Force, such as the Super Tucano and its advanced precision kill weapon system. “Based on good management and investment of available equipment, the Air Force developed a plan to replace five Hawker Hunter planes with their spare with two primary training flights. This step also comes in the context of a plan to replace the existing Bulldog aircraft, which are specialized for primary flight training, and which are expected to be stopped from flying in the next five years,” the source said.

However, the Lebanese Air Force will keep two Hawker Hunters (one with double seats and the other with a single seat) with some spare parts in hopes they can be fixed up for future air shows. ormer Commander of the Lebanese Air Force Brig. Gen. Mahmoud Mattar told Defense News that the country’s limited economic resources are behind its decision to sell aircraft. “The scarce economic resources prevent LAF from refurbishing and re-operating the Hawker Hunter fighters and the Sikorsky. Though, the technical capabilities to replace the spare parts and bring Hawker Hunter back to service and particularly for ground-attack missions are available,” Mattar said. The aircraft are expected to be sold in a public bidding this year, the Lebanese source noted. The official added that interested parties will likely be “small companies or private clubs.”

by middleeastmonitor.com — The usually grand Baalbek Music Festival, set among 3,000-year-old Roman ruins in Lebanon, was reduced to just a single concert this year by the COVID-19 pandemic. For maestro Harout Fazlian, however, it was one of the most special of his career. On a stage in the ancient temple of Bacchus, Fazlian conducted […]

Opinion by David Ignatius — washingtonpost.com — A grim new chapter in the Saudi “Game of Thrones” battle for control of the kingdom appears to be underway, as Crown Prince Mohammed bin Salman prepares corruption and disloyalty charges against his predecessor and onetime rival, former crown prince Mohammed bin Nayef — a man who was once the United States’ champion in the war against Islamist terrorism. This royal family showdown has been building ever since MBS, as he’s known, deposed his predecessor in June 2017. The roots lie even deeper, in the bitter rivalry between supporters of the late King Abdullah, who had championed MBN, as the former crown prince is called, and the courtiers who surrounded his successor, King Salman, and his impulsive son MBS, when the new king assumed power after Abdullah’s death in January 2015.

Saudi and U.S. sources say that MBS’s anti-corruption committee is nearing completion of a detailed investigation of allegations that MBN improperly diverted billions of Saudi riyals through a network of front companies and private accounts while he was running Saudi counterterrorism programs at the Interior Ministry. MBN served there as chief assistant to his father, Prince Nayef, and then succeeded him as minister from 2012 to 2017. An associate of MBN’s said Saudi investigators have demanded that he repay $15 billion they claim he stole, though it isn’t clear how they reached that number. The associate, like some others contacted for this article, requested anonymity because of the sensitivity of the matter. MBN’s supporters say these charges are false — and are contradicted by a 2007 royal decree from King Abdullah that authorized all of MBN’s activities and provided for a detailed annual report on his spending. Internal Saudi documents provided by an associate of MBN’s and reviewed by The Post support MBN’s contention that his secret financial activities were approved, at least in broad outlines, by the late king.

by arabnews.com — DUBAI: Cyprus will no longer accept flights coming from Lebanon from July 6, national newspaper the Daily Star reported, citing a statement from the Cypriot Embassy. The statement said the decision was based on a classification system that determines countries’ epidemiological criteria amid the coronavirus pandemic. But Cypriot nationals and residents would […]

by arabnews.com — DUBAI: Model and philanthropist Jessica Kahawaty has taken to social media to raise awareness about Lebanon’s deepening economic crisis amid the coronavirus pandemic. According to reports, the economic crisis coupled with the health pandemic can lead to a famine in the Levant country. Kahawaty, who is part Lebanese and part Australian, took to her Instagram Stories to explain the seriousness of Lebanon’s worsening economic crisis and hyperinflation. “For non-Lebanese to understand the severity of what’s happening in Lebanon: $100 used to give you 150,000 Lebanese Liras,” she wrote. “Due to the deteriorating state of the country, $100 gives you 900,000 Lebanese Liras. If you’re living and working in Lebanon and your salary a year ago was 4.5 million Liras per month, today that salary is worth $450. Severe inflation is reflecting an increase in prices in the supermarkets,” she added, before urging her followers to donate to different organizations helping on the ground in Lebanon. “If you know of more organizations, please DM me so I can share,” she wrote alongside links to several Lebanese NGO’s and charities that provide assistance to Lebanese families struggling to put food on the table.

By Nasser Saidi — thenational.ae — Lebanon is in the throes of an accelerating economic and financial meltdown. Unsustainable monetary and fiscal policies and an overvalued, pegged exchange rate led to persistent fiscal and current account deficits. Public debt, which reached more than 155 per cent of gross domestic product in 2019, is projected to rise to 161.8 per cent in 2020 and 167 per cent in 2021, according to International Monetary Fund estimates. That is the third-highest ratio in the world after Japan and Greece. Informal capital controls, foreign exchange licensing, freezing of deposits and payment restrictions to protect the dwindling reserves of Lebanon’s central bank, precipitated the financial crisis, generated a sharp liquidity and credit squeeze and the emergence of a system of multiple exchange rates. The squeeze is severely curtailing domestic and international trade and resulted in a loss of confidence in the monetary system and the Lebanese pound. Multiple exchange rates created distortions in markets and new opportunities for corruption. The result is a sharp, double-digit contraction in economic activity, consumption and investment, surging bankruptcies, and rapidly rising unemployment rates estimated at above 30 per cent.

A dangerous inflationary spiral has gripped the country with the currency’s value against the dollar nosediving as much as 80 per cent. Inflation is on the rise and reached an annual 56 per cent in May, according to Lebanon’s Central Administration of Statistics. A Bloomberg survey of economists conducted in June, projects inflation will average 22 per cent in 2020 compared with a forecast of 7.7 per cent from a previous survey. The minimum wage has shrunk from the equivalent of $450 per month while food prices have surged. Since the end of a 15-year civil war in 1990, extreme poverty has hovered at between 7.5 to 10 per cent, while about 28 per cent of the population is poor, according to the World Bank. In November, the World Bank warned if the economic situation in the country worsened, those living below the poverty line could rise to 50 per cent. Given the collapse of the long-maintained peg, there is no anchor for expectations of the future value of the Lebanese pound.

by aawsat.com — Lebanon’s electricity crisis severely worsened over the past few days, with power outages extending to 20 hours per day even in the capital. Many generator owners have raised the monthly tariff because of the high cost of diesel and reduced subscription hours, which drowned several areas in total darkness that was only broken by candlelight. The electricity crisis prompted a number of stores, especially small ones, to stop buying food commodities that need a refrigerator. Minister of Energy Raymond Ghajar said that power rationing was due to the lack of fuel, citing “judicial reasons” behind the delay of delivery by fuel ships.

In response, member of the Progressive Socialist Party (PSP) and electricity expert Mohammed Basbous stressed that the ministry was required to provide further information on the matter. “It’s surprising that we currently face an electricity crisis, especially since the Algerian Sonatrach company announced that it would commit to supplying Lebanon with the amount of fuel it needs and would refrain from renewing the contract at the end of the year,” he told Asharq Al-Awsat. “The electricity crisis was supposed to start at the end of the year and not now, if no alternatives were found,” he emphasized.