Lebanon approves World Bank rescue plan for needy families

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By NAJIA HOUSSARI -- arabnews.com -- BEIRUT: The Lebanese parliament on Friday approved a $246 million World Bank emergency assistance plan to support struggling families and strengthen the social safety net amid the country’s worst economic and health crisis in decades. Under the relief plan, 161,251 families classified as the poorest in Lebanon will receive 800,000 Lebanese pounds ($80) per month per family for one year. The aid program will be implemented under the supervision of the World Bank. The emergency package is expected to reduce mounting resentment against the country’s political leadership, which is widely blamed for the economic collapse and parliamentary stalemate. Mohammed Fahmy, the caretaker interior minister, warned of “a diminishing security situation,” adding that “security is a product of politics, and all the country’s systems have diminished.” He said: “We are part of the people and we are hungry. The political forces must resolve the obstacles to form a rescue government as soon as possible. “We can no longer take it. The situation is very bad, the country is exposed, and I am sounding the alarm.”

French Foreign Minister Jean-Yves Le Drian warned on Thursday that “time is running out to prevent the collapse of Lebanon, and we do not see any indication that Lebanese politicians are doing what they can to save their country.” The approval of aid follows growing protests against the economic meltdown. Protesters attempted to march on the UNESCO Palace in Beirut while a parliamentary session took place, but tight security measures stopped them from reaching the venue. Meanwhile, the dollar exchange rate on the black market in some regions reached new highs of 11,000 Lebanese pounds. As the dollar exchange rate soars, the price of essential materials and commodities is increasing, while the value of people’s wages continues to decline.

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France and US chide Lebanese politicians amid warnings of 'collapse'

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by english.alaraby.co.uk -- France and the United States hit out at Lebanon's warring politicians on Thursday, with Paris saying they were failing to help the country as it slid towards "total collapse". "It's tempting to say it is a case of non-assistance to a country in danger by Lebanese politicians," French Foreign Minister Jean-Yves Le Drian told a news conference. "Everyone knows what needs to be done." France has taken a leading role in trying to break the political deadlock in its former protectorate, with President Emmanuel Macron visiting the country twice last year. Lebanon's deeply divided political class has failed to agree on a new cabinet since a massive explosion in Beirut port last August that killed more than 200 people and led to the government's resignation.

Le Drian said "nothing has happened" since Macron's visits when he pushed a plan for the political parties to form a non-sectarian government of experts which would be tasked with carrying out economic reforms and tackling corruption. "I do believe that it is still not too late, but we're running out of time before total collapse," the French minister added. The US supported Le Drian's statement, saying that Lebanon's leaders have shown "inaction in the face of multiple ongoing crises". "The Lebanese people -- we believe they deserve a government that will urgently implement the necessary reforms to rescue the country's deteriorating economy," State Department spokesman Ned Price said in Washington. "Lebanon's political leaders need to put aside their partisan brinksmanship, they need to change course, they need to work for the common good and common interest of the Lebanese people," he said. Lebanon is mired in protests and an economic crisis, which has brought surging unemployment and spiralling prices while the currency has plunged to lows to the dollar on the black market. French officials have repeatedly voiced their exasperation at what they see as Lebanese politicians failing to put the interests of the country before their own.

Panic on the streets as Lebanese pound hits new low

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By NAJIA HOUSSARI - Arabnews.com -- BEIRUT: Lebanese supermarkets halted sales and businesses closed their doors on Saturday as the country’s embattled currency slumped to a record low on the black market. With the dollar exchange rate exceeding 12,000 Lebanese pounds, panic erupted on the streets as shopkeepers and major outlets stopped selling goods to avoid incurring losses. Amid growing alarm at the country’s increasingly precarious state, activists in working-class areas in Mount Lebanon climbed the minarets of mosques and called on people to take to the streets. A spokesperson for the Oct. 17 revolution said: “We will stay in the squares until the corrupt system falls.” Hundreds of protesters in Martyrs’ Square in downtown Beirut pounded on metal barriers blocking access to parliament and hurled rocks at security forces manning roadblocks. Anti-riot personnel launched tear-gas grenades after violent clashes erupted between protesters and security forces.

In the past three days, Lebanon’s currency has endured a roller-coaster ride, rising to 9,000 Lebanese pounds against the dollar before falling to 10,000 Lebanese pounds. But in a dramatic collapse on Saturday, the Lebanese pound fell from 11,750 to 12,200 against the dollar, with the slump worsening by the hour despite efforts to close online trading platforms. Economist Louis Hobeika told Arab News: “The strong demand for the dollar is caused by the decline in confidence in the country. People are panicking about the future.” Hobeika rejected the idea that banks are buying up dollars. “The dollar trading volume in the Lebanese market does not exceed $2.5 million. The banks want to increase their capital on the request of the Banque du Liban collectively and need $3.5 billion — and this cannot be secured from the Lebanese market.” Protesters traveled to Martyrs’ Square from different regions, with retired soldiers leading many groups.

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Video of activist Sara El-Yafi ripping Lebanese government goes viral, sparks controversy

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by arabnews -- LONDON: A video of a Lebanese public policy consultant and activist ripping apart the government during a TV debate went viral on social media platforms Thursday, with many lebanese sharing it as a way to express their mounting frustration with the current situation in their country. Sara El-Yafi was highlighting the severity of the country’s crises on France 24 and used strong language to describe Lebanon's political leaders. “They are mafia lords, militia lords, a can of carcinogenic worms who thrive and survive in sectarian divides,” she said in a fiery monologue that summed up what many Lebanese people had been feeling over the past year. “Hyperinflation is a rare phenomenon in the world, but it is the daily bread of the Lebanese people. This comes at the backdrop of a country that has seen no economic growth for years due to the incomprehensible incompetence of a dreadful ruling class, a damning ruling class that has invested none of our resources on any form of productive investment or societal nation-building but instead was spending, embezzling, stealing the funds of the Lebanese people to uphold their mafia feudal kingdom.”

Lebanon is fighting battles across multiple fronts: An unprecedented economic crisis that has seen the national currency lose 85 percent of its value, a political struggle that has seen Prime Minister-designate Saad Hariri still without a government months after being tasked to form one, and the coronavirus pandemic. In addition, half of the capital Beirut was levelled by last August’s explosion that killed over 200 people and left around 300,000 homeless, and the caretaker energy minister earlier warned that Lebanon was heading toward “total darkness” at the end of the month due to its inability to supply electricity.

Lebanese parliament approves World Bank loan to help poor

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BEIRUT (AP) By  Bassem Mroue— Lebanon’s parliament on Friday approved a $246 million loan from the World Bank that would provide cash assistance for more than 160,000 families in the small country hit by an unprecedented economic crisis and the coronavirus pandemic. The approval came as the local currency hit a new record low on the black market, trading 11,150 Lebanese pounds to the dollar. The new crash triggered immediate protests, mostly in the country’s north. The previous day, France warned that Lebanon was running out of time before total collapse, blaming bickering politicians who for months have been unable to agree on a new government even as Lebanon slides into economic and financial abyss. Last week, protesters closed roads around the country with burning tires for a week, after the dollar hit 10,000 pounds on the black market for the first time. The currency collapse throws more people into poverty as their purchase power declines.

The currency crash will affect recipients of the cash from the World Bank, as the money will be distributed to the 161,257 families — or about 800,000 people — in Lebanese pounds. Each of the families will get 800,000 pounds a month for one year, according to the agreement with the World Bank that calculated the dollar at 6,240 pounds. Since Lebanon’s economic and financial crisis began in late 2019, there have been different exchange rates for the dollar in the highly-indebted country, including the official rate with about 1,500 pounds to the dollar, the black market rate, and a cash withdrawal rate from U.S. dollar accounts in local banks, with at 3,900 pounds for $1. Using the rate of 6,240 pounds to the dollar in helping poor families means they are being short-changed, getting about 62% of what they would be getting on the black market rate.

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Le Drian: Lebanese Politicians Show No Sign of Saving their Country

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by reuters -- French Foreign Minister Jean-Yves Le Drian said on Thursday time was running out to prevent Lebanon from collapsing and that he could see no sign that the country's rival politicians were doing what they could to save it. "I would be tempted to qualify Lebanese politicians as guilty of not helping a country in danger," Le Drian told a news conference in Paris. "They all committed to act to create an inclusive government and committed to implementing indispensable reforms. That was seven months ago and nothing is moving. I think it's not too late, but the delays are very small before collapse.” Le Drian said such a collapse would spell disaster not only for the Lebanese people, but also for the hundreds of thousands of Syrian and Palestinian refugees it hosts, as well as the entire region. France has spearheaded international efforts to rescue Lebanon from its political and economic crisis by trying to use its influence to persuade squabbling politicians to adopt a reform roadmap and form a new government of non-partisan specialists to unlock international aid.

Prime minister-designate Saad Hariri is at loggerheads with President Michel Aoun and has been unable to form the cabinet since October. Groups of protesters have been burning tires daily to block roads since the Lebanese currency tumbled to a new lows, deepening popular anger over Lebanon's financial collapse. "It's up to the Lebanese authorities to take their destiny in hand knowing that the international community is looking with concern," Le Drian said. "There is still time to act today, but tomorrow will be too late." Speaking at his side, the foreign ministers of Egypt and Jordan also urged Lebanon to form a new government as soon as possible.