Riots In Central Beirut Can Destroy Lebanon - Hariri

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BEIRUT ( Sputnik) Riots that took place on one of the central Beirut streets were beyond inexcusable and such actions can destroy the whole country, acting Lebanese Prime Minister Saad Hariri said on Wednesday. Earlier in the day, eyewitnesses told Sputnik that protesters continued clashing with police and throwing stones and other objects, who in response fired tear gas to disperse the protesters. Reports said that around 47 officers were injured and 59 people were detained. "The attack on the Hamra street is unacceptable under no circumstances. It is an attack that I do not want to hold anyone responsible for, the people's revolution or their dissatisfaction with banks ... From my political, governmental and parliamentary viewpoint, I will not accept being a witness of suspicious actions that can ruin the whole country," Hariri said in a statement. He called to prosecute those accountable for the riots in the Lebanese capital in accordance to the law and also demanded the army to fulfill its obligations on ensuring security.

In October, protests flared across Lebanon amid a crippling economic crisis. They have been demanding urgent reforms to end the deepening liquidity crisis, while President Michel Aoun has blamed it on sanctions. The economic and financial situation has continued to deteriorate, with private entrepreneurs refusing to accept any payment by bank transfer. Hariri's government resigned on October 29, but the demonstrations have not stopped. In mid-December, President Michel Aoun designated former Education Minister Diab as the next prime minister. However, a new government that satisfies all political parties has not yet been formed. According to the media reports, anti-government protesters gave Diab 48 hours to form a new cabinet.

Hariri Says 'No One Can Sack' Salameh, Asks 'Where was Army' Tuesday

by naharnet -- Caretaker Prime Minister Saad Hariri on Wednesday defended Central Bank Governor Riad Salameh following a meeting with him at the Center House. “The central bank governor has immunity and no one can sack him,” Hariri told reporters after the talks. “All people want to blame the central bank for what’s happening in the country, but there are $47 billion in debt in the electricity file and had we addressed the file, the issue would have been solved,” Hariri added. “The funds went to private generator providers and everyone knows who they are,” the caretaker PM went on to say. “They are saying that I’m the one obstructing the electricity file, but have I ever been in charge of the energy ministry?” Hariri said.

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The clock is ticking on Lebanese leaders to act

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by thenational.ae -- As turmoil sweeps the Middle East, the eyes of the world have lost sight of the ongoing uprisings in Iraq, but also in Lebanon. After weeks of relative calm, the Lebanese people have vowed to relaunch nationwide protests in what they have dubbed a “week of wrath”. The Lebanese have a lot to be angry about. Their country is going through a crippling economic crisis and, for the past thirty years, it has been led by an elite that has largely failed to meet the population's basic needs. Lebanon has been without a government for more than two months after a popular uprising led Prime Minister Saad Hariri and his Cabinet to resign. Mr Hariri stated at the time that he wanted to heed the calls of those calling for a better future for Lebanon. The country has been suffering from electricity shortages for the past three decades, however, in the last week, it has endured even longer cuts, with some Beirut residents reporting less than 30 minutes of electricity per day. An internet shutdown is also on the horizon. Telecommunication companies have expressed fears that the government will be unable to pay them for their services by March.

Adding to people’s woes, a financial crisis of unprecedented proportions has hit the country since November. Lebanon has been downgraded by Moody’s and other credit rating agencies twice in a year, and the Lebanese pound has lost half of its value to the American dollar on the black market. A shortage of dollars, to which the pound is pegged and that is used interchangeably with the local currency, has pushed banks to impose informal capital controls. The draconian measures include a cap on foreign currency withdrawals of $200 per week, a ban on transferring money abroad, as well as refusing people access to their frozen accounts. As a result, most companies have downsized or halved their employees’ salaries and many businesses have gone bankrupt. Frustration is in the air, as Lebanese are forced to queue for hours at their local bank, only to withdraw a couple hundred dollars. Many fear their life savings are as good as gone. The situation has fuelled anger at the banking system, with protesters staging demonstrations in front of Lebanon’s Central bank. Some have even resorted to violence, setting the very banks where they keep their savings on fire, or smashing their windows in desperation.

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Pitched clashes near Lebanon's central bank amid protests

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BEIRUT (AP) SARAH EL DEEB— Lebanese security forces fired volleys of tear gas at protesters who responded with rocks outside the country’s central bank in pitched street battles that lasted for hours late Tuesday. The clashes ended a day of rallies that followed a lull in the three-months-long protests. The street clashes stretched down one of Beirut’s busiest commercial areas and come after a day when protesters resorted to blocking roads to express their impatience at a ruling elite they say has failed to address a fast crumbling economy. The protesters have also turned their anger at the country’s banks, which have imposed capital controls on foreign currency accounts in the highly dollarized economy. Protesters using metal bars and sticks smashed windows of commercial banks and foreign exchange bureaus nearby.

Beirut’s most bustling commercial boulevards, Hamra Street, also packed with theaters and restaurants, was deserted late Tuesday save for protesters and security forces. Local TV stations carried the pitched street battles live, including late night arrests of at least half a dozen protesters. Calm had prevailed since the designation of Hassan Diab as prime minister in mid-December. But Diab, nominated by the President and a simple majority of parliament members, has so far failed to form an emergency government amid political divisions and jockeying for power. The lull was also partly due to the holidays followed by soaring regional tensions between the U.S. and Iran that eclipsed the protesters in Lebanon and Iraq demanding sweeping political change. Clashes at the bank began late Tuesday after security forces arrested a few of the protesters. It was not immediately clear why they were arrested. Local media said the protesters had removed metal barriers erected around the central bank. Lebanon’s Internal Security forces later said “vandals” attacked the central bank and injured a number of the personnel guarding it. The demonstrators accuse the central bank’s governor of financial policies that have worsened Lebanon’s liquidity crunch. The country is facing its worst economic crisis in decades. The local currency has lost over 60% of its value in just the past few weeks, while sources of foreign currency have dried up. Meanwhile, banks have imposed informal capital controls limiting withdrawal of dollars and foreign transfers in the country, which relies heavily on imports of basic goods.

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US Troops in Iraq Got Warning Hours before Iran Attack

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by AP -- American troops were informed of an impending missile barrage hours before their air base in Iraq was struck by Iran, U.S. military officials said Monday, days after the attack that marked a major escalation between the longtime foes. At 11 p.m. on Jan. 7, U.S. Lt. Col. Antoinette Chase gave the order for American troops at Ain al-Asad air base in western Iraq, to go on lockdown. Military movements froze as her team, responsible for emergency response at the base, sent out alerts about the threat. At 11:30 p.m., she gave the order to take cover in bunkers. The first strike landed sometime after 1:35 a.m. on Jan. 8 and the barrage continued for nearly two hours. Half way through the attack, Chase learned the missiles were being launched from Iran.

No American soldiers were killed or wounded, the U.S. has said, although several troops were treated for concussions from the blast and are being assessed, said Col. Myles Caggins, a spokesman at the base for the U.S. coalition fighting the Islamic State group. “The reason why we pushed it at 2330 is because at that point in time all indications pointed to something coming,” she told reporters touring the base. “Worst case scenario — we were told was it’s probably going to be a missile attack. So we were informed of that.” The Iranian attack was in retaliation for the U.S. drone strike near Baghdad airport that killed top Iranian Gen. Qassem Soleimani on Jan. 3. An Associated Press crew touring the Ain al-Asad base saw large craters and damaged military trailers. Forklifts lifted rubble and loaded it onto trucks from an area the size of a football stadium. U.S. soldiers inspected portable housing units destroyed in the attack. The sprawling complex in western Anbar province is about 180 kilometers (110 miles) west of Baghdad and is shared with the Iraqi military. It houses about 1,500 members of the U.S. military and the U.S.-led coalition fighting the Islamic State militant group.

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Lebanese Protesters Block Road Outside Central Bank

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BEIRUT (AP) — LEBANESE protesters used sandbags and bricks Monday to block a main street outside the country's central bank, protesting financial policies they say deepened a liquidity crunch. Lebanon is facing its worst economic crisis in decades, with the local currency losing over 60% of its value to the dollar over the last weeks while sources of foreign currency have dried up. Meanwhile, banks imposed informal capital controls limiting withdrawal of dollars and foreign transfers in the country that relies heavily on imports of basic goods. Panic has set in among residents who fear their deposits are in danger. Nationwide protests for three months have failed to pressure politicians to form a new government to institute drastic reforms.

The incumbent prime minister Saad Hariri resigned in late October. The president after consulting parliamentary blocs designated a new prime minister in December, who has yet to form a new Cabinet amid deep political divisions. After weeks of calm, protesters threatened to launch a week of protests, culminating in civil disobedience, demanding the immediate formation of a government to deal with the severe financial crisis.

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As banking sector suffers, Lebanese are getting poorer and poorer

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thearabweekly.com -- Lebanon’s economy is on the verge of collapse and everyone — Lebanese locals, expatriates, bankers, economists, politicians and even donors who have yet to come through with their pledges because they are waiting on economic reforms — knows it. The banking sector’s steady decline is devastating because it was once one of the few reliable parts of Lebanon’s economy. Lebanon’s industrial and agricultural sectors, despite their high-quality products, have been unable to penetrate foreign markets but the country’s banking and services sectors often flourished, beginning in the 1950s and 1960s when Beirut was a haven for Arab oil money and foreign depositors. In times of stability, tourism in Lebanon also became a vibrant sector. The Lebanese economy has faced problems because it relies too heavily on consumer-based structures. This aggravated the current crisis in which many Lebanese are unable to access money from their bank accounts because of capital restrictions.

The capital limits, imposed by banks that fear depositors will withdraw money all at once and cause a liquidity crisis, pushed people to desperate measures to try to withdraw money from their accounts. Some have crushed ATMs and bank facades; others took sleeping mattresses into bank lobbies and there were those who have taken to occupying tellers’ desks. One depositor withdrew 6 million Lebanese pounds — more than $10,000 — in cash after he parked a bulldozer in front of the bank entrance and threatened to demolish the building if his request was not met. The chaotic scene is broadcast live on social media, further eroding confidence in the banking system. Melhem Khalaf, president of the Beirut Bar Association, slammed the capital control measures imposed by the Lebanese Banks Association as “unconstitutional and illegal.” “This is a process that should be undertaken by the legislative authority,” he said in a statement. Some depositors have turned to the Lebanese judiciary with complaints and numerous courts have ruled in favour of depositors Lebanese families dependent on expatriates working abroad and transferring money home to them are also growing concerned. It is estimated that almost 500,000 Lebanese are working in the Arab Gulf region, many regularly sending money to loved ones in Lebanon. If Lebanon’s cash and banking transfer system crashes, that source of income would be lost for many Lebanese households.

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