by AFP — BEIRUT: Talks between crisis-hit Lebanon and the International Monetary Fund are deadlocked, and leaders reluctant to enact reforms. Without a vital multibillion-dollar bailout, is Lebanon headed for “hell“? For months, the Mediterranean country has grappled with its worst economic crisis since the 1975-1990 civil war. Tens of thousands have lost their jobs or part of their salaries, while a crippling dollar shortage has sparked rapid inflation. After the country for the first time defaulted on its sovereign debt in March, the government pledged reforms and in May started talks with the IMF toward unlocking billions of dollars in aid. But 16 meetings later, the negotiations are stalling.

“The IMF has left the negotiating table and talks have stopped,” said a member of the Lebanese negotiating team speaking on condition of anonymity. Another Lebanese source familiar with the negotiations said IMF representatives have “not sensed serious commitment from the Lebanese delegation” toward reform. “Every faction is vying for its own personal interests while the country burns,” they said. Deadlock is common in multi-confessional Lebanon, where politicians have for decades been accused of cronyism, conflict of interest and corruption. As Lebanon seeks help from the IMF, arguments are mounting over the scale of total financial losses for the state, central bank and commercial banks. The government estimated losses at around 241 trillion Lebanese pounds, which amounts to about $69 billion at an exchange rate of 3,500 pounds to the greenback. But a parliamentary committee quoted much lower figures using the old currency peg of 1,507 pounds to the dollar. The IMF considers the government’s figures to be more likely. The discrepancy in the figures shows the great power and influence of a “lobby ready to see Lebanon burn rather than expose what they did to it,” the Lebanese negotiator said.

by By Sirwan Kajjo – voanews.com —  The Lebanese militant group Hezbollah is intensifying efforts to open a new border crossing between Lebanon and Syria, local sources and Arab media reported this week. The Iranian-backed Shiite group has been constructing an unofficial crossing along Lebanon’s eastern border with Syria, according to pan-Arab newspaper Asharq al-Awsat. Workers commissioned by Hezbollah have been working intensively in recent days to pave a road for the crossing, said a local source in Lebanon’s Bekaa Valley region. The source, who insisted on anonymity for fear of retribution from Hezbollah, told VOA that militants affiliated with Hezbollah have been using the route for years to transport fighters and weapons between the two countries, “but it looks like they want to prepare it for civilian use as well.”

Backed by Iran

Hezbollah has been a major actor in Syria’s civil war since 2012, siding with the government of President Bashar al-Assad. With support from Iran, the group has deployed thousands of fighters to Syria in recent years. A voice recording about the development was widely circulated on social media last week. In the clip, a Hezbollah commander purportedly said the construction of this border crossing “is a message to the enemies inside and outside [Lebanon that] soon convoys will pass through here.” VOA couldn’t independently verify the authenticity of the recording. Hezbollah officials have not made any public statements about these reports. Two pro-Hezbollah members of the Lebanese parliament did not respond to VOA’s request for comment in time for publication. Jerry Maher, a Lebanese political analyst, said Hezbollah and its networks have long been using illegal routes for smuggling between Lebanon and Syria, but the opening of an “actual border crossing” would likely facilitate further activities by the militant group that violate international sanctions. “Hezbollah benefits from such activities by smuggling certain foodstuffs and medicine from Syria into Lebanon and selling them to its supporters [for] relatively cheap prices,” he told VOA.

by voanews.com — Rachel Greenland — WASHINGTON – With its economy continuing a downward spiral and protests reigniting, Lebanon’s crisis keeps growing and so are the warnings that the unrest could explode into a major regional crisis. Many of those warnings have come from the United States, which historically has committed large numbers of troops – including more than 200 who were killed in the 1980s when the U.S. intervened as part of a multi-national force to stop the country’s civil war. But Washington’s response this time has been limited, and analysts say that measured approach is rooted in U.S. fatigue in a region where it has a long history of unsuccessful ventures. “The invasion of Iraq did not go well, our involvement in Syria has not gone well, Afghanistan is still going on, so I think the government is tired of trying to deal with the problems there,” said Larry Korb, senior fellow at the Center for American Progress, a research organization in Washington. “This is really a problem that the international community has to deal with because of the fact [of] the devaluation of the currency, the high unemployment there.”

The U.S. has sought to bring positive change with actions such as stepping up sanctions on affiliates of the Iran-backed Hezbollah, urging Lebanon’s leaders to fix its economic problems, advising the disarmament of militias, and calling on Lebanon to end its involvement in Syria, according to Danielle Pletka, a Middle East analyst at the American Enterprise Institute in Washington. “But the United States, unfortunately, like Israel, like a lot of European countries, looks at Lebanon and just kind of throws its hands up. It’s just too much of a mess, and the effort that will be required to straighten it out is not proportional to the benefits anymore,” Pletka said. “That is a disaster not just for us, obviously, but (for) the Lebanese people.”

BY ANCHAL VOHRA — foreignpolicy.com — Beirut’s Little China restaurant is the city’s most prominent establishment that serves authentic Chinese food, and it’s a regular gathering place for people of Chinese origin. It also serves as a symbol of China’s marginal role in Lebanese life more generally. If Hassan Nasrallah, the chief of Hezbollah, has his way, that may soon change. Nasrallah recently declared in a televised speech that Lebanon must “look east” to China for its salvation at its present time of crisis. The implication was clear: Lebanon should not look to the International Monetary Fund. His Lebanese audience was left befuddled. The extent of crisis was evident—the country’s economy has nosedived, to calamitous effect, in recent weeks—but Lebanon, including some of its most reactionary conservatives, has always understood itself as an outpost of Western values and influence in the Middle East. But Nasrallah is not alone among Lebanese policymakers in believing the country may soon have no choice but to enter China’s political and economic orbit. If that happens, political analysts say, it could mark a new and uncertain chapter in the country’s history.

Lebanon’s economy is in shambles, threatening to join Zimbabwe or Venezuela as one of the world’s terminal economic disasters. Since October 2019, the Lebanese pound has lost 80 percent of its value and plummeted from its fixed exchange rate of 1,500 to the U.S. dollar to 8,000 last week on the black market. Salaries earned in the local currency have turned worthless as prices of basic commodities have tripled. Rises in food prices (including for bread) have hit the middle and lower classes especially hard, and electricity cuts have become regular occurrences. Some Lebanese have started resorting to barter, while the young and unemployed are increasingly opting for desperate measures to make a living. A 24-year-old graduate recently walked from shop to shop in a downtown Beirut market popular with expatriates to sell freshly squeezed orange juice. “Hi, will you support me, please,” he asked everyone plaintively. But Lebanon’s ruling elite continue to drag their feet on political and economic reforms meant to halt corruption and restructure indebted banks, measures necessary to procure a $10 billion bailout from the IMF. Two European diplomats told Foreign Policy that division between Lebanese political factions is the reason the IMF loan hasn’t yet come through. Last week, Alain Bifani, one of Lebanon’s top negotiators with the IMF, resigned from his senior position at the finance ministry and was quoted as saying he had reached a “dead end” with the political and financial elite. He said those with vested interests were obstructing the path to change, because any bailout envisioned a haircut of $3 billion on accounts held by the country’s most wealthy. Millions of Lebanese have been braving a de facto haircut since banks imposed capital controls in mid-November 2019 and refused to let them withdraw their money. A few days after Bifani’s resignation, talks with the IMF were suspended entirely.

by middleeasteye.net — Lebanon Prime Minister Hassan Diab is suing the cash-strapped American University of Beirut (AUB) for over $1m, according to reports in the Gulf media. Before becoming prime minister in January, Diab was an engineering professor at AUB and served as its vice president for regional external programmes. Two senior AUB officials told Saudi Arabia’s Al Arabiya English that Diab is claiming that he did not resign from his position and is asking for retirement funds and severance pay for his contract that expires in 2025. Al Arabiya reported that two other sources with knowledge of the matter said Diab is also seeking compensation for delays to his payment, and is asking for more than $1m in the lawsuit.

Shortly after Diab was appointed as premier, he reportedly failed to respond to AUB as to whether he wanted to be placed on leave without pay or resign from his vice president role. Under AUB policies, a member of staff cannot hold a full-time faculty position while serving in office, although the university offers an option of one-year unpaid leave, which can be extended for two years. Diab reportedly continued to be paid his salary until his government received a vote of confidence from Lebanon’s parliament in February, despite not carrying out his duties at the university.

By NAJIA HOUSSARI — arabnews.com — BEIRUT: Gen. Kenneth McKenzie, commander of the US Central Command (USCENTCOM), has stressed the importance of the strong partnership between the US and the Lebanese Armed Forces. He reaffirmed the importance of preserving Lebanon’s security, stability, and sovereignty, and underscored the importance of the strong partnership between the US and Lebanese militaries. Gen. McKenzie arrived in Beirut amid protests against this visit organized by supporters of Hezbollah on the road leading to Rafic Hariri International Airport, while Lebanese troops took extreme measures to prevent protesters from approaching McKenzie’s convoy. The Information Office of the Lebanese Presidency issued a statement noting: “(General) McKenzie met with President Michel Aoun who praised the cooperation between the Lebanese and US armies in matters of training and armament, and hoped to further develop the military cooperation between Lebanon and the US.”

Aoun pointed out to “the support that the Lebanese Army received from the US Army in 2017 during the battle of Aarsal against Daesh and Al-Nusra,” and added “the (Lebanese) army succeeded in eliminating terrorist dormant cells and continues pursuing them.” The statement noted that McKenzie confirmed the “continuous support of the US military command to the Lebanese army that is defending Lebanon’s independence and sovereignty at all levels including combat and continuous high-level training.” Gen. McKenzie was accompanied by USCENTCOM officials and officers, as well as the US Ambassador to Lebanon Dorothy Shea, and US Defense Attaché Robert Meine. The US Embassy in Lebanon said: “The one-day visit to Lebanon also included meetings with senior Lebanese political and defense leaders, including representatives of the Ministry of Defense and the Lebanese Armed Forces, office calls at the US Embassy, and a brief stop at memorials honoring the memory of those who have perished in service to their country.”

 By SARAH EL DEEB — BEIRUT (AP) – A Lebanese businessman serving a five-year sentence in the United States for providing millions of dollars to the militant Hezbollah group arrived Wednesday in Beirut after his early release, local media reported. Kassim Tajideen was sentenced last year in a federal court in Washington for his role in a money laundering conspiracy aimed at evading U.S. sanctions. He was arrested in Morocco and extradited to the U.S. in 2017, where he was charged with laundering money for Hezbollah. A State Department official said the U.S. government had opposed Tajideen’s motion for compassionate release but in the end the court ruled in his favor. Tajideen, who was designated as a terrorist in 2009, would remain on a terrorist list and his assets would remain blocked, the official added. The fact that he is being released early doesn’t diminish the severity of his crime, the official said, speaking on condition of anonymity in line with regulations. There was no immediate comment from Lebanese officials on Tajideen’s early release.

Lebanon’s National News Agency reported Tajideen’s arrival. A local Lebanese TV station, LBC, broadcast a video taken with a mobile phone of his arrival at the Beirut airport. He stepped out of a small jet, wearing a face mask as a necessary coronavirus precaution. The video shows a man rushing toward Tajideen, hugging him and stooping down to Tajideen’s feet in celebration of his release. A federal judge in Washington had ordered Tajideen’s release in May. The National, an English language newspaper in the United Arab Emirates, said the 64-year-old Tajideen was granted compassionate release due to health conditions and fears of coronavirus infections in prison. The U.S. Department of Justice had contested the release. Tajideen was accused of conspiring with at least five other people to conduct over $50 million in transactions with U.S. businesses in violation of sanctions barring him from doing business with U.S. nationals and companies because of his support for Hezbollah. Washington has designated the Iran-backed Hezbollah a terrorist group. Tajideen pleaded guilty last December and agreed to forfeit $50 million.

By HUSSAIN ABDUL-HUSSAIN — asiatimes.com — Lebanon is in a state of severe economic stress. The price of almost every good has soared beyond the ability of many citizens. Legions are out of work. Businesses are locked in a dire existential struggle. There is perhaps no more accurate judgment on the state of an economy than the currency market. In this respect, although the Lebanese pound remains officially – fantastically, one might add – pegged at roughly 1,500 to the US dollar, in truth it takes close to 9,000 pounds to exchange for a dollar. That is an 83% devaluation in the market’s faith in the economy. Many Lebanese, however, are unaware that their national crisis is in fact of Lebanon’s own making. Mostly, they blame an American embargo – one that does not really exist. This misplacement of blame blinds the country to the real cause of its malaise: Hezbollah. Except for sanctions imposed by the US Treasury Department’s anti-terrorism arm, the Office of Foreign Assets Control, on a few Lebanese entities and individuals connected to Hezbollah – the self-claimed “party of God” – there is no financial restriction on the state of Lebanon or any of great substance against its institutions, public or private.

But even without being under sanctions, foreign direct investment – usually the engine of economic growth – shies away from Lebanon. Foreign investors are simply unwilling to bring their money into a country that lives in a state of perpetual war, with Hezbollah currently involved in regional entanglements – in Syria, Yemen and Iraq – or threatening to go to war with Israel. When the Friends of Lebanon group convened an international donor conference two years ago that came to be known as Cedre, it pledged a rescue package worth US$11 billion. The only conditions were that Beirut should get its act together and eradicate corruption and privatize state utilities – especially the highly inefficient Electricité du Liban.

by middleeasteye.net — Kareem Chehayeb — Lebanon’s iconic Casino du Liban was once where the richest of the region came to play. Standing on the cliffs above the Mediterranean, 20 kilometres north of Beirut, it has been dubbed as the Monte Carlo of the Middle East. Though much-loved and revered as a monument to Lebanon’s better days, the casino, which is part-owned by the state, could find itself soon out of the public’s hands. Lebanon’s economy is in freefall. The currency has lost some 80 percent of its value in recent months and officials are eyeing ways to raise liquidity, including selling off some of the state’s most prized assets, such as the casino. Like the rest of the country, Casino du Liban is emerging from a coronavirus lockdown. A disinfectant booth greets visitors at the entrance, and men in jumpsuits busy themselves outside, preparing for another round of sanitisation.

Portraits of former Lebanese heads of states and international celebrities in the entrance hall put the casino front and centre of the country and region’s history. Lebanon’s casino has hosted a slew of high-ranking officials and celebrities, including the shahs of Iran, King Abdullah of Jordan, and even Osama bin Laden. It was considered “impressive culturally, but also socially”, Mona Fawaz, professor of urban studies and planning at the American University of Beirut, told MEE. But aside from flaunting social status and enjoying cultural events, it was also a place to do business and “meet important people”, she said. In fact, Fawaz said, business networking at Casino du Liban was integral to commence major development projects in Lebanon, like in Hay El-Sellom, the country’s largest informal settlement just south of Beirut. “Back in the 1950s, [the developer] knew he had to go there to meet important people to get services and other supplies to the neighbourhood,” Fawaz says. “That’s how he met all these important people to bring in asphalt and other things to that neighbourhood.” Nothing of the sort has been possible in recent months, however. Coronavirus forced an 80-day closure, and though scores of mask-wearing men and women can be seen playing the slot machines, the casino’s restaurants are still shut, as are other gaming areas.

by naharnet –– Maronite Patriarch Beshara al-Rahi on Sunday called on President Michel Aoun to break what he called the siege that is imposed on Lebanese “legitimacy” and the country’s “free national decision.” In his Sunday Mass sermon, al-Rahi also urged friendly nations to “scramble to rescue Lebanon, the same as they used to do […]