IMF sending $1bn loan to Lebanon but ‘funds might be wasted’

A general view shows the ravaged port of Lebanon’s capital Beirut, on September 14, 2021. (AFP)
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Updated 15 September 2021
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IMF sending $1bn loan to Lebanon but ‘funds might be wasted’

  • Money will be deposited into Lebanon’s Central Bank and is supposed to be used to activate the national cash card scheme
  • Politicians warned against the possible misuse of IMF loan: ‘This is the first test for Mikati’s government and the funds must be spent carefully’

BEIRUT: Lebanon is suffering through a dire financial crisis and while an interest-free injection of funds from the International Monetary Fund will help, many are concerned with how the state will appropriate the money. 

The country’s finance ministry was informed by the IMF that Lebanon will receive approximately $1.1 billion in special drawing rights or SDRs, with $860 million marked for 2021 and $275 million for 2019. The money will be deposited into the accounts of Lebanon’s Central Bank (BDL).

The country is depending on this allocation to address the financial and economic crises that have ravaged Lebanon for the past two years. The money will also be used to activate the national cash card scheme, which will benefit 700,000 families in Lebanon amid the decision to completely lift subsidies on fuel. Funding the cash card will require $566 million annually.

SDRs are not controlled or conditioned and they are interest-free, financial expert Walid Abu Sleiman said. The funds are usually granted in a case of crisis as Sleiman said Lebanon was the recipient of these SDRs because of the coronavirus.

“The risky part is that the allocation will be handled by the state, represented by BDL, and the government could spend it in coordination with BDL, which means that these funds might be wasted,” Sleiman told Arab News.

He compared it to when Lebanon received a $225 million loan from EDL (Electricité du Liban) but the funds were spent in less than a month, which left the Lebanese with no access to electricity.

“The sum will be received by BDL, not the government,” Sleiman said. “It must be used in projects that bring revenues for the Lebanese people because this loan will be paid back from their money.”

Lebanon’s dollar reserves have almost dried up. BDL informed the ruling class in August that it was no longer capable of opening new credit lines to import or subsidize fuel.

The registration process for the cash card platform was supposed to kick off on Wednesday. However, Lebanon’s media outlets reported that “technical problems” might have hindered the launch of the platform and added that “funding for the card is not guaranteed to be provided from the IMF loan.”

It was an all-too-common response to yet another financial blunder in the cash-strapped country. On Wednesday, politicians warned against the possible misuse of IMF’s allocation.

“What is needed is a legal course for all the expenditures,” Hezbollah MP Hassan Fadlallah said. “It must also be subject to the government’s decisions in line with the controls defined by the laws in force.”

The new government, led by prime minister Najib Mikati, is still busy with the handover process from Hassan Diab’s government and forming a ministerial statement that the cabinet will announce on Thursday. Giving the new government a vote of confidence depends on this statement.

Meanwhile, the UN Office for the Coordination of Humanitarian Affairs said last week more than 80 percent of Lebanon’s population has slipped below the poverty line, a rate much higher than last year, which was estimated at 50 percent.

The Lebanese are struggling to make ends meet after the local currency lost more than 90 percent of its value on the black market. 

Regarding the need for a legal course to use IMF’s loan, Sleiman said: “There is no need for a legal course for issues like stabilizing the dollar exchange rate and subsidies. The parliament has already approved the cash card and allowed the cabinet to borrow more than $560 million, meaning that the government can benefit from the IMF loan knowing that the funds will not be controlled.”

But if the funds were used to build a power generating plant, for example, a legal course would be required, Sleiman said.

Economic expert Elie Yashoui said that IMF allocation has nothing to do with government formation.

“It is the first test for Mikati’s government and therefore, the funds must be spent carefully with a clear plan,” he said. 

“BDL should not consider that the allocation belongs to it. The allocation belongs to the Lebanese state, and the government must include it in the treasury and the budget of 2022. The sum should not be spent to finance the cash card or to import or subsidize any item.”

Lebanon’s Kataeb Party warned against “the possible misuse of the loan by the current political class through new projects or electoral aid distributed through suspected projects and cards under the pretext of aid.”

The party said the structure of Mikati’s government “is incapable of making any reforms that can pull Lebanon out of its crises, as long as it is controlled by the same ruling class and as long as its priority is not the Lebanese people. The road map that guarantees the restoration of institutions starts with negotiations with the IMF.”


Middle East latest: Israeli defense minister officially steps down

Updated 10 sec ago
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Middle East latest: Israeli defense minister officially steps down

Israel has been rocked by Gallant’s dismissal, with the news setting off mass protests across the country
Israel Katz, his replacement, currently serves as foreign minister and is a longtime Netanyahu loyalist and veteran Cabinet minister

TEL AVIV: Israeli defense minister Yoav Gallant officially stepped down Friday in a ceremony that replaced him with Israel Katz, the former foreign minister, after Prime Minister Benjamin Netanyahu fired Gallant earlier this week.
Israel has been rocked by Gallant’s dismissal, with the news setting off mass protests across the country. Many in Israel view Gallant as the sole moderate voice in a far-right government, and see his removal as a sign that the far-right government of Benjamin Netanyahu has lost interest in returning hostages still held in Gaza.
Israel Katz, his replacement, currently serves as foreign minister and is a longtime Netanyahu loyalist and veteran Cabinet minister.
Also Friday, the Israeli military body handling aid to Gaza, COGAT, said it is preparing to open a new aid crossing into Gaza as the deadline for a US deadline to increase desperately-needed aid into the war-ravaged territory approaches. But the body did not say when the crossing will open nor if aid will be delivered to north of Gaza, where the UN and aid groups say the humanitarian situation is most dire.
The United Nations humanitarian office says Israel’s monthlong offensive in northern Gaza is preventing the estimated 75,000 to 95,000 Palestinians in the north from receiving essential items for their survival.
On Thursday, the Israeli military says it will allow 300 truckloads of humanitarian aid supplied by the United Arab Emirates to enter the Gaza Strip in the coming days. That’s less than the 350 trucks per day that the United States said it wants to see enter the war-ravaged territory.
The Israel-Hamas war began after militants stormed into Israel on Oct. 7, 2023, killing some 1,200 people — mostly civilians — and abducting 250 others. Israel’s military response in Gaza has killed more than 43,000 people, Palestinian health officials say. They do not distinguish between civilians and combatants, but say more than half of those killed were women and children.
Hezbollah began firing into Israel on Oct. 8, 2023, in solidarity with Hamas in the Gaza Strip. Since the conflict erupted, more than 3,100 people have been killed and some 13,800 wounded in Lebanon, the health ministry reported.

Turkiye, Greece must work together to resolve host of issues, Turkish minister says

Updated 08 November 2024
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Turkiye, Greece must work together to resolve host of issues, Turkish minister says

  • Issues between NATO allies Turkiye and Greece are not limited to disagreements over maritime boundaries and jurisdiction in the eastern Mediterranean

ANKARA: Issues between NATO allies Turkiye and Greece are not limited to disagreements over maritime boundaries and jurisdiction in the eastern Mediterranean, Turkish Foreign Minister Hakan Fidan said on Friday, adding the historic rivals must work together to resolve them.
Speaking at a press conference in Athens alongside his Greek counterpart, Fidan also repeated Ankara’s view that a federation model to resolve the dispute over the ethnically-split island of Cyprus was no longer viable, calling for a two-state solution.
He also said Turkiye wanted to deepen cooperation with Greece on irregular migration and counter-terrorism, while increasing cooperation on tourism and cultural affairs.


HRW urges immediate action on incendiary weapons amid Gaza, Lebanon wars

Updated 08 November 2024
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HRW urges immediate action on incendiary weapons amid Gaza, Lebanon wars

  • Weaponry ‘among cruelest in modern warfare’: Human Rights Watch
  • ‘A complete ban on incendiary weapons would undoubtedly have the greatest humanitarian benefits’

LONDON:Countries must work to prohibit the use of incendiary weapons amid growing evidence of their harm on civilians in Gaza and Lebanon, Human Rights Watch has said.

The organization released a 28-page report examining the recent use of the weaponry, which can inflict “excruciating burns, respiratory damage and psychological trauma.”

The report draws on HRW interviews with survivors of incendiary weapons, medical professionals and members of civil society.

It comes ahead of a UN meeting in Geneva next week of states party to the Convention on Conventional Weapons.

HRW urged those countries to condemn the use of incendiary weapons and commit to redressing two loopholes in the treaty’s Protocol III that undermine the protection of civilians.

Since October 2023, Israel has widely deployed airburst and ground-launched white phosphorus munitions in populated areas of Gaza and Lebanon, photographic evidence has shown.

Bonnie Docherty, senior arms adviser at HRW, said: “Incendiary weapons are being used in several conflicts, endangering civilian lives and livelihoods.

“Governments need to take immediate action to protect civilians, civilian infrastructure and the environment from the horrific effects of these weapons.”

HRW described incendiary munitions as “among the cruelest weapons in modern warfare.” As well as harming people, the weapons also cause socioeconomic and environmental damage by burning homes and crops, it said.

Israel has used white phosphorus munitions, a type of incendiary weapon, in at least 17 Lebanese municipalities, including five cases of illegally deployed airburst weapons over southern Lebanon, between October 2023 and June this year.

CCW Protocol III, signed by 117 countries, contains loopholes permitting white phosphorus and features weaker regulations for ground-launched munitions than air-launched weaponry, HRW said.

Hundreds of Lebanese civilians have been displaced following Israeli white phosphorus attacks, with survivors suffering respiratory damage months after exposure.

Lebanese olive groves, a crucial source of income for many, have also come under attack, with white phosphorus able to start wildfires and cause long-term damage to soil quality.

Internationally, pressure has mounted in recent years to address the proliferation of incendiary weapons.

At the most recent CCW meeting last November, more than 100 countries condemned the humanitarian consequences of the weaponry.

HRW urged countries at next week’s Geneva meeting to “initiate informal consultations” that address the loopholes in Protocol III.

Docherty said: “Governments should seize the moment to reiterate their concerns about incendiary weapons and discuss ways to strengthen the law to better protect civilians.

“A complete ban on incendiary weapons would undoubtedly have the greatest humanitarian benefits.”


Israel must comply with ICJ measures to prevent genocide: UN human rights chief

Updated 08 November 2024
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Israel must comply with ICJ measures to prevent genocide: UN human rights chief

  • Volker Turk’s office publishes report covering violations between November 2023, April 2024
  • UN Human Rights Office: Almost 70% of fatalities in Gaza are children, women

NEW YORK: The UN high commissioner for human rights on Friday called on Israel to “fully and immediately” comply with the provisional measures issued in January by the International Court of Justice demanding action to prevent a genocide from being perpetrated against the Palestinians.

Volker Turk also called on states to honor their obligations under international law and “assess arms sales or transfers and provision of military, logistical or financial support to a party to the conflict, with a view to ending such support if this risks serious violations of international law.”

His warning comes as a new report by his office, published on Friday, warned that “if committed with intent to destroy, in whole or in part, a national, ethnical, racial or religious group, (Israel’s violations) may constitute genocide.”

In January, after considering an original case brought by South Africa accusing Israel of genocide, the ICJ issued a ruling that included provisional measures ordering Israel to take action to prevent and punish the commission of, or the incitement to commit, genocide; to halt the indiscriminate killing of Palestinians; and to immediately facilitate the delivery of humanitarian aid to the people of Gaza.

Turk said Israel’s compliance with the ICJ ruling is now “even more critical and urgent” in light of the new report, which details “the horrific reality that has unfolded for the people of Israel and Gaza since 7 October 2023,” and concludes by demanding justice with respect to the grave violations of international law that have been committed.

The ICJ measures are also more pertinent than ever given the most recent events, Turk said, including Israel’s operations in northern Gaza and its adoption of legislation banning the main UN aid agency for Palestinian refugees from operating in Israel and occupied East Jerusalem.

“It is essential that there is due reckoning with respect to the allegations of serious violations of international law through credible and impartial judicial bodies and that, in the meantime, all relevant information and evidence are collected and preserved,” said Turk.

The new report covers violations that occurred from November 2023 to April 2024, including the killing of civilians and breaches of international law that it said could amount to war crimes.

“If committed as part of a widespread or systematic attack directed against a civilian population, further to a State or organizational policy, these violations may constitute crimes against humanity,” the report says.

Turk urged support for the work of accountability mechanisms, including the International Criminal Court, in relation to the conflict in Gaza, for the exercise of universal jurisdiction to investigate and try crimes under international law in national courts, and for compliance with extradition requests of suspects of such crimes to countries where they would receive a fair trial.

The report highlights repeated statements from Israeli officials calling for Gaza’s entire destruction and the exodus of its people.

It documents Israel’s efforts to “rationalize discrimination, hostility and violence towards, and even the elimination of, Palestinians.”

The report underscores how civilians have borne the brunt of the attacks, including through the initial “complete siege” of Gaza, as well as Israel’s continuing “unlawful failures” to allow the entry of humanitarian aid, the destruction of civilian infrastructure, and mass displacement of Palestinians.

“This conduct by Israeli Forces has caused unprecedented levels of killings, death, injury, starvation, illness and disease,” the reports says, adding that Hamas and other Palestinian armed groups have also committed serious violations of international law on a wide scale

“The rules of war, in force now for 160 years, were designed to limit and prevent human suffering in times of armed conflict,” Turk said.

“Their wanton disregard has led to the current extremes of human suffering which we continue to see today.

“It seems inconceivable that the parties to the conflict refuse to apply universally accepted and binding norms developed to preserve the very bare minimum of humanity.”  

The UN Human Rights Office says close to 70 percent of fatalities in Gaza are children and women, indicating “a systematic violation of the fundamental principles of international humanitarian law, including distinction and proportionality.”

The continuation of these attacks “demonstrates an apparent indifference to the death of civilians and the impact of the means and methods of warfare selected,” the report states. 

It also raises concerns over the forcible transfer of Palestinians, attacks on hospitals in “apparent systematic fashion” as well as journalists, and the reported use of white phosphorus munitions.

“Our monitoring indicates that this unprecedented level of killing, and injury of civilians is a direct consequence of the failure to comply with fundamental principles of international humanitarian law — namely the principles of distinction, proportionality and precautions in attack,” Turk said. 

“Tragically, these documented patterns of violations continue unabated, over one year after the start of the war.

“The trends and patterns of violations, and of applicable international law as clarified by the International Court of Justice, must inform the steps to be taken to end the current crisis,” he added.

“The violence must stop immediately, the hostages and those arbitrarily detained must be released, and we must focus on flooding Gaza with humanitarian aid.” 


Lebanon state media says Israel blows up houses in 3 border villages

Updated 08 November 2024
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Lebanon state media says Israel blows up houses in 3 border villages

  • ‘Since this morning, the Israeli enemy’s army has been carrying out bombing operations inside the villages of Yaroun, Aitaroun and Maroun Al-Ras in the Bint Jbeil area’

BEIRUT: Lebanon state media said the Israeli army on Friday detonated explosives planted inside houses in three border villages that have been battered by the Israel-Hezbollah war.
“Since this morning, the Israeli enemy’s army has been carrying out bombing operations inside the villages of Yaroun, Aitaroun and Maroun Al-Ras in the Bint Jbeil area, with the aim of destroying residential homes there,” the official National News Agency said, the latest in a string of similar incidents that have impacted the flashpoint border area.