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.

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."

By Dale Gavlak -- AMMAN - Lebanon's government has officially defaulted on its payment of a $1.2 billion Eurobond debt due Monday. This marks the first default in Lebanon's financial history, as it copes with dwindling foreign currency reserves and inflation running into double digits. In the past, the country once known as the Switzerland of the Middle East managed to repay debt, despite civil war and political unrest. But now it faces the challenge of securing loans amid global economic issues and the coronavirus outbreak. The situation has left many Lebanese concerned, said Habib Malik of the Lebanese American University. The national news agency says 41 coronavirus cases have been reported in Lebanon, one of several Middle Eastern countries grappling with the infection and its economic implications. "People are very, very nervous," Malik said. "If a global economic recession is going to kick in because of this epidemic, then this will simply mean that there will be less money for countries like Lebanon, ailing for other reasons. "Right now, the Diab government is being very honest and realistic with the people and the debtors that Lebanon would like to negotiate a restructuring of the debts. In the next couple of weeks, we will see the representatives of the debtors and the Lebanese government come together to try work out a deal. It’s going to be slow and rough going," Malik added.

by Associated Press --- Beirut: Lebanon's prime minister has said the government will suspend payment of $1.2 billion in loans, marking the crisis-hit country's first-ever default on its sovereign debt amid ongoing popular unrest. Hassan Diab made the announcement in a televised address to the Lebanese people, saying the country will seek to restructure its massive debt. The $1.2 billion Eurobond matures on Monday. The default marks a new chapter in the crisis and could have severe repercussions on the tiny country, risking legal action by lenders that could further aggravate and push Lebanon's economy toward financial collapse. The currency has already lost up to 60 per cent of its value on the dollar on the black market and banks have imposed crippling capital controls on cash withdrawals and transfers.

Diab said Lebanon's debt reached $90 billion or 170 per cent of GDP, making it one of the highest in the world. He added that the total debt and interest Lebanon had to pay back in 2020 is at $4.6 billion "Lebanon's debt is greater than the country can handle," he said. By saying that Lebanon will suspend paying back the debt rather than directly saying it will not pay it, Diab's government appeared to be keeping the door open for negotiations with creditors. Late last month, the government appointed Cleary Gottlieb Steen & Hamilton LLP as a legal adviser on the country's Eurobond debt and financial advisory and asset management firm Lazard as a financial adviser. Diab said Lebanon's foreign currency reserves "have reached a critical stage" leading the government to suspend its debt payment so that it can continue to provide basic commodities to the Lebanese people. "The decision to suspend payment is the only way to stop the attrition and protect our national interests, while at the same time launching a comprehensive reform program," Diab said.