
by dw.com — Foreign donors have said Lebanon needs fundamental reforms before the debt-ridden country gets any more support. But a new international aid package runs the risk of fostering a business-as-usual approach in Beirut. After a video conference involving 32 nations and 12 international organizations, including the United Nations, the European Union and the World Bank, a new package of financial and humanitarian aid for Lebanon was agreed on. The explosion of ammonium nitrate stored in the Lebanese capital, Beirut’s port in early August was just the latest blow to the country, where a political and economic crisis has been ongoing. Following a financial crisis in 2019, popular protests against a government widely perceived as corrupt and ineffective began in mid-October that year. The Beirut port explosion, which killed over 200 and did over $4 billion worth of damage, led to eventual resignation of the prime minister and his Cabinet. A new government has yet to be formed. Since 2019, inflation has soared as has unemployment and locals living in poverty. The value of the Lebanese pound has plummeted, and local banks have restricted cash withdrawals. The COVID-19 pandemic has only exacerbated Lebanon’s problems and some now call this the worst crisis the country has faced since its 15-year civil war ended in 1990.
Lebanon to get fresh funds
Last night’s decision to establish a new fund — the Reform, Recovery and Reconstruction framework, or 3RF for short — will see Lebanon receive additional funds. Details of the fund and how it will be managed are to be announced on Friday. According to the French government, more than €280 million($338 million ) in emergency aid have already been handed out, after the first donor conference, held immediately after the port explosion. Now, member states of the European Union alone are pledging a further €100 million, on top of the almost €70 million handed out already, European Council President Charles Michel said in a statement. French President Emmanuel Macron has been pressuring Lebanese officials to reform and will visit the country again later this month. He has previously said that until the political problems at the heart of the Lebanese financial crisis are solved, the country should not get a bailout.