Central Bank: Lebanon’s debt rises $1 billion

Lebanon’s total public debt rose to the equivalent of $33.9 billion by the end of February from $32.9 billion a month earlier, the Central Bank said in its monthly bulletin.

External public debt comprised $18.99 billion of the total. However, banking sources estimate the debt now stands at $35 billion. In official figures also released Saturday, the bank said Lebanon recorded a $777.4 million balance of payments deficit in the first two months of 2005, compared with a surplus of $203 million in the same period last year. It recorded a $784.6 million deficit in February alone. Banque du Liban said the deficit reflected a drop in its net foreign assets but an increase in those of banks and financial institutions.

German attorney to head Hariri investigation

A German prosecutor has been named by the UN to lead an investigation into the assassination of former Lebanese Prime Minister Rafik Hariri, after the first two candidates for the job backed out.

Detlev Mehlis, the senior public prosecutor in the Berlin attorney general’s office, has overseen terrorism and organized crime cases as well as investigations into trans-national crime, Secretary-General Kofi Annan said in a statement.

The Security Council approved the probe into Hariri’s February 14 assassination on April 8, but the first two candidates turned down the job, UN officials said. The investigation is expected to include more than 50 people, administrative and security staff are also expected to be included in the investigation.

Preparations for Lebanon polls gather steam

BEIRUT (AFP) – Lebanon began the countdown for legislative polls, with 51 candidates, including the son of slain former premier Rafiq Hariri, competing for 19 seats in Beirut in the first phase of the vote, the interior ministry said.

The vote in Beirut’s three districts will be held on May 29, and will continue over the rest of the country on the following three Sundays to choose a 128-seat parliament — the first since a Syrian troop pullout last month ended 29 years of domination.

Individual candidates in Beirut had until midnight Friday to register and political party leaders are now expected to announce their electoral lists following consultations.

Saad Hariri postpones announcing candidates list for third time
Further consultations to be held

BEIRUT: Saad Hariri, the son of slain former Prime Minister Rafik Hariri, stated that the announcement of his Beirut candidates’ list will be postponed once more for the sake of national unity. Hariri, who was speaking at an electoral rally held at the Beirut Development Association in Verdun Thursday night, also reaffirmed his pledge to preserving harmony and consensus among all Lebanese.

He said: “If [Rafik] Hariri has given his blood, then we can sacrifice one or two days before announcing the list for the sake of national unity and the people who participated in the March 14 demonstration.”

He stressed the importance of preserving the achievement of unity which was attained during the March 14 unity rally.

Mikati raises possibility of electoral law changes

Announcement made after Sfeir meeting

By Majdoline Hatoum

BEIRUT: Lebanon’s Prime Minister Najib Mikati insisted parliamentary elections will begin on time this month but added some amendments could still be made to the controversial legal framework for the polls.

Following a meeting with Maronite Patriarch Nasrallah Butros Sfeir, who has condemned the 2000 electoral law under which the elections will take place for failing to properly represent Lebanon’s Christians, Mikati, said: “We will assess the possibility of reconsidering the electoral law of 2000, perhaps introducing amendments to some electoral districts.”

Violence flares on Israeli border ahead of key Lebanon polls

KFARSHOUBA, Lebanon (AFP) – Violence flared on Lebanon’s border with Israel for the first time in four months as preparations quickened for parliamentary elections in two weeks’ time.

The Friday 13th flare-up underlined the dangers of a power vacuum in Lebanon after Syria ended its 29-year troop deployment last month, with the anti-Syrian opposition fracturing amid 11th-hour bickering over the constituency boundaries for the elections.

An Israeli military spokeswoman reported no fewer than nine explosions near Israeli positions in the disputed Shebaa Farms district.

Explosions rock Israeli position in Lebanon border area  

JERUSALEM (AFP) – A series of explosions were reported near an Israeli military base in the contested Shebaa Farms district on the border between Syria, Lebanon and Israel.

At least six blasts, probably caused by rocket fire from southern Lebanon, rocked the volatile area, an army spokeswoman said Friday.

Lebanese police said earlier that Israeli troops had opened fire with heavy machine guns on southern Lebanon amid fresh tension along the border.

The shooting hit the village of Kfarshouba near the Israeli-occupied Shebaa Farms district, damaging a house, police said.

Israel holds Lebanon responsible after border blasts

JERUSALEM (AFP) – Israel reiterated that Lebanon was responsible for maintaining peace along their common border following at least two explosions in 24 hours in the volative region.

“Israel holds Lebanon responsible for what happens on its border,” Defence Minister Shaul Mofaz told public radio, adding that Israel had no interest in escalating tension along its northern border.

“We are following events in Lebanon closely. The Syrians continue to play a certain role despite announcing their troops have withdrawn,” Mofaz added Friday.

Lebanese banks struggle with public debt

Banking official slams government for failure to take serious action

BEIRUT: Lebanese banks may not be able to finance the public debt this year at the same pace as before if customer deposits and capital inflow shrinks, the secretary general of the Association of Banks in Lebanon (ABL) warned Thursday. “Commercial banks have been financing the public debt for a long time. However, this trend may change if the banking sector does not achieve real growth in deposits and assets” said Makram Sader.

According to the Central Bank, the money supply in the first four months of 2005 fell by 3.2 percent compared to 3 percent growth in the same period of 2004.

Sfeir brushes off U.S. accusations he is stirring sectarian strife

Patriarch lashes out at Lebanon’s MPs saying they failed their duty to pass a new electoral law

By Leila Hatoum , Daily Star staff

BEIRUT: Maronite Patriarch Nasrallah Boutros Sfeir brushed off U.S. accusations that he was “whipping up sectarian sentiments” following his criticism of Lebanon’s electoral law and launched a fresh attack on the legal framework for the upcoming elections.

Following his insistence that the current electoral law “violates Christian Muslim coexistence,” which drew a sharp rebuke from the White House, who accused the patriarch of  increasing sectarian tension by “adding fuel to the fire,” Sfeir said yesterday that the law failed to “satisfy anyone.”