by By Tom Perry and Ellen Francis — BEIRUT, (Reuters) – The heavily indebted Lebanese government approved a draft budget to cut its large deficit on Friday, aiming to ward off a financial crisis which top leaders have warned is bearing down on the country unless it carries out reforms. The draft 2019 budget, which will cut the deficit to 7.5% of GDP from 11.5% in 2018, is seen as a critical test of the government’s will to launch reforms that have been put off for years by a state riddled with corruption and waste. Lebanon’s bloated public sector is its biggest expense, followed by the cost of servicing a public debt equal to some 150% of GDP, one of the world’s heaviest debt burdens. The budget could help unlock some $11 billion in financing pledged at a Paris donors’ conference last year for infrastructure investment, if it wins the approval of donor countries and institutions. “Now, praise God, we are done. The budget is complete,” Information Minister Jamal Jarrah said after a cabinet session. One more meeting to seal the process will be held at the presidential palace on Monday before the draft is referred to parliament for approval.

Fears the budget would lead to cuts to state salaries, pensions or benefits triggered weeks of strikes and protests by public sector workers and military veterans. Measures to rein in the public sector wage bill include a three-year freeze in all types of state hiring and a cap on extra-salary bonuses. State pension will also be taxed. However a temporary public sector salary cut mooted by some early in the process was not included. A big chunk of the deficit cut stems from tax increases including a 2% import tax and a hike in tax on interest payments. The government also plans to cut some $660 million from the debt servicing bill by issuing treasury bonds at 1% interest rate to the Lebanese banking sector.

“THE JURY’S STILL OUT”

The final cabinet approval had been obstructed by a dispute over whether more needed to be done to bring the deficit lower. But Finance Minister Ali Hassan Khalil, speaking to local media, said “all the clauses and articles” had been agreed. Nobody had raised any objections when Prime Minister Saad al-Hariri said “we are done” at the end of the session, he added. Foreign Minister Gebran Bassil, who had been demanding further debate, signalled no objection to the cabinet decision. “We have started along the path of controlling the deficit and reducing it and we will continue through subsequent budgets,” Al-Jadeed television quoted him saying.

  by John Pontifex — catholicherald.co.uk —Archbishop Warda says that, with the exception of Hungary, Western governments have failed to help An Iraqi Church leader has met Britain’s Foreign Secretary Jeremy Hunt and called on the Government to provide urgent help to prevent persecuted minority faith groups from dying out in their ancient homelands. At […]

by aawsat.com —Lebanese parliament Speaker Nabih Berri spoke on Wednesday of clear progress in the issue of demarcating the southern maritime border with Israel. He had held talks on the issue with visiting acting US Assistant Secretary of State for Near Eastern Affairs David Satterfield. The official is in charge of negotiations on this file […]

by Arab News –– DUBAI: The success that Lebanese director Nadine Labaki’s third film, “Capernaum,” continues to find across the world is astounding — even to her. Just one year ago, “Capernaum” won the Jury Prize at the Cannes Film Festival — a jury chaired by Cate Blanchett — after a 15-minute standing ovation. The film went on to be nominated for both a Golden Globe and an Academy Award for Best Foreign Film, with Labaki becoming the first woman from the Arab world to receive that honor. Now, perhaps most surprisingly, “Capernaum” has become an unexpected blockbuster in China, reportedly grossing $44 million in just over two weeks. “It’s crazy! I can’t believe it! I really can’t. Why there? It’s all very new, so I still don’t know what it means exactly, but we’re soon going to find out,” Labaki tells Arab News in Cannes. With its success in China, along with the US, Middle East and across Europe, “Capernaum” has reportedly become the highest grossing Arabic-language film in history. “There’s been rumors going on for the past two to three days, and it’s like, ‘What?’ I still can’t believe it. It’s living proof that an Arab film with no actors can actually be a box office hit — can actually return money, make money for investors. You know how much we’re struggling in the Arab world to make films, find money, find funding, find investment. Especially for a Lebanese film,” Labaki says.

[Xinhua] — Greek Ambassador to Lebanon Franciscos Verros said on Monday that Lebanon and Greece are working on increasing tourism exchange between the two countries. “The Lebanese are well known for being great fans of Greece’s tourism, especially when it comes to island destinations such as Myconos and Santorini,” Verros told Xinhua in an interview […]

Beirut (AFP) — Hundreds of retired Lebanese security personnel protested Monday over feared pension cuts and tried to storm the government’s headquarters in Beirut as ministers mulled an austerity budget inside. For weeks, the government has been discussing budget cuts required to unlock $11 billion in aid pledged to the Mediterranean country in Paris last […]

Cheikh Walid el Khazen paying his respect to our Patriarch 

Cheikh Farid Haykal and Cheikh Amine el Khazen representing the el Khazen family as guardians of Bkerke

The el Khazen family headed a convoy carrying our Patriarch Cardinal Mar Nasrallah Boutros Sfeir to Bkerke 

Our Deepest respect & Sympathy from the el Khazen family to our Patriarch Cardinal Mar Nasrallah Boutros Sfeir. We pray for you today. Today Lebanon is without a father with your passing. 

by reuters — Bkerke — Lebanese political leaders and thousands of other people gathered on Thursday for the funeral of the former Maronite patriarch, Cardinal Nasrallah Sfeir, who pushed for Syrian forces to leave Lebanon after its civil war. Ten black-clad priests with purple scarves bore his wooden coffin, marked with a cross, out of a chapel and along a purple carpet through crowds of mourners as incense wafted around. They were led by the current Patriarch Boutros Al Rahi, wearing his burgundy mitre and robes and carrying a large cross, and by other priests holding the vestments of Sfeir.

President Michel Aoun, a Maronite, Sunni Muslim Prime Minister Saad Al Hariri, Parliament Speaker Nabih Berri, a Shiite Muslim, and numerous political party leaders sat among the mourners on Thursday. French Foreign Minister Jean-Yves Le Drian also attended, as did many foreign ambassadors and a Papal representative. The Shiite Hizbollah movement, a close ally of Syria’s government and an opponent of the United States, was not going to take part in the funeral, Lebanese TV channel MTV reported. The US State Department described Sfeir on Wednesday as “a courageous leader and a champion for the idea of a sovereign and independent Lebanon”. Hariri declared Wednesday and Thursday as official days of mourning and May 16 was also made a national holiday this year.

Pope sends condolences for death of Card. Nasrallah Sfeir

By Devin Watkins vaticannews.va — — “I extend my deep condolences to his family, and to all the faithful of the Patriarchal Maronite Church of Antioch, which he governed for many years with such gentleness and determination,” wrote the Pope in a telegram sent Tuesday to Cardinal Rai.

Architect of peace — Pope Francis called Cardinal Sfeir “a free and courageous man” and “a key architect of mediation, peace, and reconciliation”. “A staunch defender of his country’s sovereignty and independence, he will remain a great figure in Lebanon’s history,” said the Pope. “I ask the Father of all mercy to welcome into his home of peace and light this wise and committed Pastor who knew how to manifest God’s love to the people entrusted to him.”

by naharnet.com: Lebanon bids farewell on Wednesday to former Maronite Patriarch Nasrallah Boutros Sfeir, who died Sunday. Patriarch Beshara al-Rahi presided a prayer service in Bkirki in mourning of Sfeir. The convoy carrying the body of Sfeir departed early on Wednesday from the Hotel Dieu De France Hospital in Ashrafieh heading to Bkirki was headed by the el Khazen family Scores of people lined the streets from Ashrafieh to Jounieh to pay their respects. The Lebanese flag was flown at half-mast over the Presidential Palace in Baabda in mourning.

by dalystar.com.lb — Thousands of Lebanese people from across the country gathered Wednesday to bid farewell to former Maronite Patriarch Cardinal Mar Nasrallah Boutros Sfeir. While some stood at the side of the road waving flags and throwing petals over the hearse carrying Sfeir’s coffin, others made the trip to Bkirki, the seat of the Maronite Church, to pay their respects. Mourners had gathered in the hospital’s courtyard since the early hours of the morning, awaiting a glimpse of the impressive wooden coffin designed by Lebanese sculptor Rudy Rahme. The coffin, weighing more than 200 kilograms, was made by artist Rudy Rahme from Lebanese olive and cedar wood and topped by a relief of the late patriarch’s head, chiseled from stone originating from the Qadisha Valley.

As the convoy approached Bkirki, some abandoned their cars and began to make their way up on foot, clad in black, despite the 30 degree Celsius heat. Having passed through multiple layers of security, worshipers were greeted in Bkirki by giant screens bearing images of the late patriarch and loudspeakers playing hymns.

  BEIRUT (Reuters) – Retired soldiers in Lebanon, concerned about any pension or benefit cuts as the government debates a draft budget, started picketing the Central Bank building late on Sunday, saying they aimed to stop workers from entering on Monday morning. As about 100 protesters gathered outside the Central Bank, Lebanon’s coalition government held […]

khazen.org offers its deepest condolences to the Maronite Church. Today is  a great loss for Lebanon, the Maronites around the world and the Catholic Church. Rest in Peace! 

by thenational.ae —Church bells rang across Lebanon on Sunday morning to pay tribute to one of the most influential religious figures in the past decades, former Maronite patriarch Nasrallah Boutros Sfeir, who died at dawn on Sunday just days before his 99th birthday. “The Maronite church has lost one of its most prominent patriarchs,” the Lebanese presidency tweeted. In a press release, Prime Minister Saad Hariri paid tribute to Mr Sfeir’s legacy, stressing that he had worked to bring the Lebanese together at “a difficult time in Lebanese history”. Foreign diplomats also spoke highly of Mr Sfeir. “I am sorry to hear of the passing of Patriarch Sfeir, an exceptional man of faith who advocated tolerance and peace”, British ambassador to Lebanon Chris Rampling tweeted. A statement by the Maronite church published in the early hours of Sunday said that he died at 3am and called for churches to ring their bells at 10am.

Born on May 15 1920 in Rayfoun, a village in Lebanon’s Kesrwan mountains, Mr Sfeir became the leader of the church in 1986 until he resigned in 2011 due to his declining health. He was considered a respected power broker during the 1975-1990 civil war. “In 1986, Mr Sfeir was the first religious dignitary to cross the demarcation line (between Muslim East Beirut and Christian West Beirut) to meet Sunni Mufti Hassan Khaled”, remembers ex-MP Fared Souaid. Mr Sfeir’s backing of the 1989 Taif agreement that brought the 15-year civil war to an end bolstered Christian support for the accord but reduced the powers of the presidency, a seat reserved for Lebanon’s Maronite Christians under the country’s confessional power-sharing. “He strived to break down walls between communities and became a symbol of national unity”, said Mr Souaid, a Maronite politician who was one of the founders of the Qornet Shehwan gathering which called for the withdrawal of Syrian troops from Lebanon in 2001. They left four years later, following the assassination of Prime Minister Rafic Hariri. The gathering was launched with the blessing of Mr Sfeir, who was strongly opposed to Syrian control over Lebanon.

During his time as patriarch, he boycotted several prestigious invitations to Syria, including the visit of Pope Jean-Paul II to Damascus in 2001. “His biggest struggle was to end the Syrian presence in Lebanon, which we all thought was impossible because of the divisions in Lebanon,” his biographer Antoine Saad told AFP. “But he worked on it steadily, objectively, meticulously and quietly,” he said. Mr Sfeir’s is also credited with having brokered the 2001 reconciliation between the Druze and the Christians. The two communities fought during the early 1980s in the mountainous region of Chouf in what became known as the “mountain war”. Druze leader Walid Joumblatt was one of the first to pay homage to Mr Sfeir on Twitter Sunday morning. “Farewell to the patriarch of independence, reconciliation, love and peace”, he wrote.

Mr Sfeir’s health condition had been followed closely by local media since he was hospitalised in a Beirut hospital two weeks ago for a lung congestion. As his health deteriorated earlier this week, the current Maronite patriarch, Bechara Boutros Al Rahi, cancelled a trip to Africa and a vigil prayer was organised by the predominantly Maronite party the Lebanese Forces in front of his hospital. Several prominent politicians such as Sunni Prime Minister Saad Hariri and foreign ambassadors including Saudi ambassador to Lebanon Walid Al Bukhari called him or visited him in person. Maronites represent the largest proportion of Lebanon’s Christian population, which comprises also several other denominations. They used to make up the most powerful single community prior to the civil war, but their influence has since waned as they have been outnumbered by Shiite Muslims in the multi-sectarian country.

BEIRUT, (Rahnuma): Lebanese bankers expressed Friday their worries about the government’s pressure on banks to finance the state in a bid to reduce the country’s budget deficit in 2019. “The government cannot pressure through legislations the banking sector to fund the state, which may negatively impact this sector and Lebanon’s credit rating,” Salim Sfeir, chairman of Bank of Beirut, said during a conference in capital Beirut. The conference was held to discuss the latest financial developments in Lebanon and the negative repercussions that the new state budget may have on banks and on the economy in case the government decides to impose new taxes on the sector. Sfeir said that banks have paid taxes valued at around 2 U.S. billion dollars in 2018.

The government has been calling for more support from banks by subscribing to Treasury Bills at a non-market rate of 1 percent in a bid to reduce the cost of debt servicing which could reach 58.6 percent of the government’s revenues by 2021 if the fiscal deficit maintained the same momentum, according to Moody’s Investors Service. It is worth noting that Lebanese banks are highly exposed to sovereign debt in Lebanon. Also, Finance Minister Ali Hassan Khalil has announced a few days ago the 2019 state budget will witness an increase in the rate of interest tax on deposits in banks from 7 percent to 10 percent. “The increase … will lead many big depositors, especially expatriates, to move their money outside Lebanon,” Sfeir said. He added that small and medium-sized depositors also rely on the interest on their deposits to survive. “All experts are well aware that it is not a healthy policy to increase taxes in times of stagnation because this will negatively impact growth rate in the country,” he explained. Likewise, Nassib Ghobril, economist and head of the economic research department at Byblos Bank, told Xinhua that the measures that the government wants to implement are “terrible.” “It is never advisable to forces banks to subscribe to Treasury Bills at a non-market rate of 1 percent,” he said. He added that increasing interest tax on deposits will worsen the situation because it affected the income of thousands of retirees who depend on their deposits interests to survive. “Also, expatriates have previously complained because they already pay an income tax in the countries in which they work,” he said. Ghobril explained that increasing interest tax on deposits will lead to an increase in the cost for banks because depositors will then ask for higher interest rates on their deposits. “When interest rates on deposits go up, interests on loans also increase … which leads to economic contraction,” Ghobril explained.