by AP — Lebanon’s armed forces have deployed near the presidential palace east of Beirut to prevent friction between rival Lebanese protesters as the stalemate over forming a crisis government continues. Anti-government protesters had called for a rally Sunday outside the Presidential Palace in Baabda to press President Michel Aoun to formally begin the process […]

by bloomberg.com — Dana Khraiche — Lebanon’s central bank plans to slash interest rates in an attempt to ease the country’s economic crisis and is considering formalizing temporary capital controls set individually by local lenders. Governor Riad Salameh told the Association of Banks in Lebanon that he will issue a circular within days to lower rates “to revive the economy” and limit the increase in “doubtful” loans, according to a document summarizing the meeting and seen by Bloomberg. The decision may buy much-needed time for Lebanon, which is reeling under its worst financial crisis in decades while authorities struggle to form a government after the resignation of Prime Minister Saad Hariri following weeks of mass protests against corruption and deteriorating living standards.

Salameh said he was considering issuing instructions that would formalize recent restrictions on capital movements imposed by commercial lenders, according to the document. The measures would be temporary until a government is formed and the financial and economic situation returns to normal, the document stipulated. The governor also said that 165 billion Lebanese pounds ($109.2 million) had been withdrawn per day from the central bank in the last two months, and that the bank is waiting for a new batch of pound banknotes to arrive on Dec. 20.

Debt Risk

President Michel Aoun convened a meeting last week that brought together Salameh, the finance minister, the economy minister and the head of the Association of Banks. They tasked the governor with taking “temporary and necessary” steps to protect the stability of the banking system. The crisis has undermined confidence in Lebanon’s ability to repay its vast public debt. The country’s debt risk, measured by credit default swaps, has surged to more than 2,500 basis points, the second-highest after Argentina, according to data compiled by Bloomberg.

By Louis Casiano | Fox News — The Trump administration has released $105 million in military assistance to Lebanon after months of delay without providing an explanation. The money for the Lebanese Armed Forces had languished in the Office of Management and Budget since September even after it won congressional approval. No reason was ever given for not releasing […]

By Lina Mounzer — nytimes.com —  BEIRUT, Lebanon — After a nearly two-hour wait at his bank, in early November, Fadi Aziz, a freelance web designer in Beirut, asked the teller to withdraw $1,000 from his account. The teller was courteous but firm: “You can’t withdraw more than $300 per week.” Mr. Aziz, who was traveling out of the country, protested that he needed the money. He insisted that the $300 limitation was illegal, that there had been no official circulars to decree it. He was ushered in to see the branch manager. This branch manager is notorious for the way she deals with customers — through the cold, inhuman logic of capital. Once, years ago, I called from abroad because I was having a problem with my debit card. She snidely inquired whether it was even worth fixing the problem considering how little money I seemed to be earning. She was no different with Mr. Aziz. “On accounts like yours, sir,” she said, with her usual sneer, “we’ve capped the withdrawal limit at $300.” More important customers would, of course, be able to withdraw more cash. Agree to disagree, or disagree better? We’ll help you understand the sharpest arguments on the most pressing issues of the week, from new and familiar voices.

The branch manager’s attitude not only reflects the Lebanese banking system’s brazen disregard for customers, it also represents the manner in which the system has been dealing with our money. Lebanese banks have been promising — and paying out — exorbitant interest rates to big depositors from the interest earned on the money they have lent out to the state. The economy is effectively a giant Ponzi scheme. The setup, whereby individual enrichment is achieved through increased public debt, is unsustainable. In Lebanon’s service-based economy, which is heavily reliant on imports and where capital is not invested in improving economic productivity but only in providing a stable dollar peg for the Lebanese lira, it almost guarantees economic collapse. The massive countrywide protests that have entered a second month — and show no sign of letting up — have only somewhat hastened that economic collapse. Set off by a proposed tax on WhatsApp phone calls announced on Oct. 17, the protests are fundamentally about decades of corruption and economic mismanagement. From the outset, protesters have been calling not only for the resignation of the government led by Prime Minister Saad Hariri (which did indeed resign on Oct. 29) but also for an end to the sectarian political system that has served as the perfect environment for corruption.

by arabnews.com — RANDA TAKIEDDINE  — A gathering of Lebanese anti-government protesters getting haircuts in front of the central bank building in Beirut last week attracted many jokes and much amusement. The protesters were expressing their rejection of a potential move by banks to take a proportion of their depositors’ money — known as a “haircut” — as a result of the country’s ongoing financial crisis. The demonstrators were having fun and enjoying this original way of protesting despite their fears over the uncertainty of the outcome of their popular uprising against corruption and the failures of the political classes. Salim Sfeir, the head of the Association of Banks in Lebanon, said in an interview with Reuters that a haircut would not solve the problem and, on the contrary, would scare off customers. The Lebanese diaspora has plenty of money overseas and this money would never come back if there was a haircut, Sfeir said. The Lebanese economy is experiencing its worst crisis since the civil war began in 1975. Government debt amounts to $88.4 billion — 150 percent of Lebanon’s gross domestic product. However, despite the liquidity crisis that is endangering the country, Lebanon last week settled a maturing $1.5 billion Eurobond, signaling to the market that, despite the political and economic crisis, it has not defaulted.

But the political stalemate — with the political class denying the people’s demands for a new government of honest, independent people — is aggravating the financial situation. The banks were shut at the beginning of the protest for two weeks. They reopened last week but limited weekly withdrawals to $1,000 and restricted transfers abroad. Added to that, depositors can only withdraw money in Lebanese pounds, which they can change for US dollars with an exchange agent. As a result of this unofficial market, the dollar rate reached as high as 2,000 Lebanese pounds, even though the currency is officially pegged to the dollar at 1,500. These measures have created panic among the people. A growing fear surfaced about the possibility of banks failing to give money to their depositors. The confidence of nonresident depositors has been lost. Banks have been targeted by many protesters, some shouting at central bank governor Riad Salame to “give us back the stolen money.” Rumors have spread in the cities, with crowds rushing to the banks to withdraw money. The central bank said last week that it was allowing banks to borrow dollars without limits at 20 percent interest to secure depositors’ needs, but stressed that the funds should not be sent abroad. The Institute of International Finance said that deposits had dropped by more than $10 billion dollars since the end of August. An important part of this money was sent abroad, while more than $4 billion of it is being kept in people’s homes.

Hezbollah and its allies are dragging their feet with no concern for the demands of the people. Randa Takieddine

by bangkokpost.com — PARIS – A French-Lebanese engineer has been chosen as secretary general of the Renault-Nissan-Mitsubishi auto alliance, part of a new business framework announced a year after former boss Carlos Ghosn was arrested. Hadi Zablit, 49, will oversee industrial cooperation projects to improve the efficiency and financial performance of the partnership, a source […]

by courant.com — By BY BASSEM MROUE — Overnight confrontations between supporters and opponents of Lebanon’s president — mostly fistfights and stone throwing — erupted in cities and towns across the country, injuring dozens of people, and 16 people were detained for their involvement, the Lebanese Red Cross and the army said Wednesday. The nationwide uprising against the country’s ruling elite has remained overwhelmingly peaceful since it began Oct. 17, but as the political deadlock for forming a new government drags on, tempers have risen. President Michel Aoun has yet to hold consultations with parliamentary blocs on choosing a new prime minister after the government resigned a month ago. Outgoing Prime Minister Saad Hariri , who was Aoun’s and the militant Hezbollah’s favorite to lead a new Cabinet, withdrew his candidacy for the premiership, saying he hoped to clear the way for a solution to the political impasse after over 40 days of protests. Protesters have resorted to road closures and other tactics to pressure politicians into responding to their demands for a new government.

The prolonged deadlock is awakening sectarian and political rivalries, with scuffles breaking out in areas that were deadly front lines during the country’s 1975-90 civil war. The most recent violence first began Sunday night after supporters of the two main Shiite groups, Hezbollah and the Amal Movement of Parliament Speaker Nabih Berri, attacked protesters on Beirut’s Ring Road. That thoroughfare had in the past connected predominantly Muslim neighborhoods in the city’s west with Christian areas in the east. Intense clashes took place Tuesday night between people in the Shiite suburb of Chiyah and the adjacent Christian area of Ein Rummaneh, where stones were hurled between supporters of Hezbollah and rival groups supporting the right-wing Christian Lebanese Forces. A shooting in Ein Rummaneh in April 1975 triggered the 15-year civil war that killed nearly 150,000 people. Also on Tuesday night, supporters and opponents of Aoun engaged in fistfights and stone throwing in the northern city of Tripoli, Lebanon’s second largest, injuring 24 people; seven were hospitalized.

by dailystockdish.com — A man has been sentenced to death in the case of a British woman who was raped and killed in Beirut nearly two years ago, Lebanon’s national news agency said. Tarek Houshi, a local Uber driver, was sentenced over the death of Rebecca Dykes, the National News Agency said. It was not […]

by famagusta-gazette.com —Lebanon’s central bank has paid the buyers of its Eurobond 1.5 billion U.S. dollars that were due on Thursday. The eight-year Eurobond has a yield rate of 5.45 percent, reported Elnashra, an online independent newspaper. Lebanese experts previously voiced their fears about Lebanon’s possible default on the Eurobond due to the financial crisis […]

by dailystar.com.lb –Emily Lewis– BEIRUT: Lebanese residents are taking matters into their own hands to encourage investment in local products as the country plunges deeper into a financial crisis and the Lebanese pound depreciates. “Our country is like a badly managed company. It’s time for the people to help in whatever way we can to save Lebanon,” Imad Jomaa, the president of media enterprise JGroup told The Daily Star Friday. Since early November, Jomaa’s company has offered free advertising for any business offering Lebanese-made products at a discount of 50 percent. Adverts for Lebanese merchandise have appeared on billboards, online platforms and local TV channels, accompanied by the hashtag which translates into #BuyLebanese. Jomaa said that 200 companies have reached out to JGroup to benefit from the offer – 95 percent of which did not have funds to advertise, so the company helped them “showcase their products to the Lebanese audience,” Jomaa said.

JGroup’s initiative is one of many launched by Lebanese entrepreneurs, activists and NGOs to encourage people to choose Lebanese-made products in increasingly tough economic times. Last April, Sylva Abi Hanna started a Facebook page called “Buy Lebanese [products] from Lebanese [people] in Lebanese [pounds]” to encourage people to buy products made in Lebanon using the national currency. In recent weeks a lack of dollar liquidity has pushed unofficial U.S. dollar-Lebanese pound exchange rates way above the official peg of 1,507.5 that was put in place in 1997. On Thursday, the black market rate reached more than LL2,300 to the dollar at some exchange shops. The frequency of Abi Hanna’s posts increased with the start of the nationwide protests that erupted on Oct. 17, calling for end to a corrupt political class, economic mismanagement and looting of public funds. “I neglected my page for a while, but I believe now more than ever that it’s important to encourage Lebanese products from Lebanese owners. This is my way to do my part as much as I can,” Abi Hanna explained to The Daily Star.