Cash or card? Confusion rages over Lebanon’s new payment system

Lebanon has been facing a fuel crisis in recent months, with long queues at service stations. (AFP/File)
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Updated 12 March 2022
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Cash or card? Confusion rages over Lebanon’s new payment system

  • Supermarkets asked to split payments between systems, as gas stations refuse to accept full card payments
  • Ukraine crisis adds to country’s 'inflationary depression' as generator kingpin warns people may soon run out of money to buy fuel

BEIRUT: Supermarket owners in Lebanon have blamed “hard-line measures” from the Banque du Liban for the introduction of a new payment system for their customers.

The central bank’s change requires the payment of 50 percent of the value of purchases in cash, and 50 percent through bank cards, on account of “low liquidity” in markets, according to Nabil Fahed, head of the Syndicate of Supermarket Owners.

This development came the same day as gas station owners decided to stop accepting full payments for fuel via bank card.

Dr. Jassem Ajaka, an economist, described the repercussions as “economically catastrophic, as long as the amount of banknotes in Lebanese pounds that a citizen can withdraw from banks is limited while prices are rising.”

This situation, he claimed, would make people consume less, causing a decline in GDP and a larger contraction in the economy.

Charles Arbid, president of the Economic and Social Council, said that Lebanon “is experiencing inflationary depression: That is, consumption and economic movement are stalled.”

Operational prices are also rising for sectors such as energy and transportation, developments which, he said, require the immediate launch of a three-dimensional participatory dialogue at government level with employers and workers to devise solutions and take action.

He added: “No solutions are magical and readily available.”

The Association of Banks in Lebanon, meanwhile, will pay the government-approved social assistance to public sector employees, including the military.

This assistance is equivalent to half of an additional salary per month, with a minimum of 1.5 million Lebanese pounds ($993) and a maximum of 3 million pounds. Sixty percent of this is paid in cash, and other means of payment are being adopted to transfer the remaining 40 percent by bank card or check.

Nawal Nassr, president of the Public Administration Staff Association, said: “We can no longer afford to be approached with this level of absurdity.

“So far, we are committed to a day of attendance and we will stop doing so if this procedure is applied.”

The repercussions of Russia’s invasion of Ukraine, which has exacerbated the world’s oil crisis and its derivatives, have also reached Lebanon.

A gallon of gasoline in the mediterranean country currently costs 500,000 pounds, and must now be paid for in cash.

Abdo Saade, head of a group of private generator owners, warned on Saturday that monthly subscription charges would increase between 30 percent to 40 percent due to the high price of diesel for his generators.

Prices currently range between 800,000 and 2 million pounds, and possibly even more depending on consumption, he said,

“After March 15, we may turn off generators in most areas because of people’s inability to pay consumption fees and (the) lack of liquidity,” Saade added.

The severe economic crisis that Lebanon has faced for two years has prevented bank transfers abroad, with several banks introducing new rules to manage deposits.

Withdrawal ceilings in Lebanese pounds and dollars are no longer commensurate with the amount of money that citizens need to pay for their expenses.

Traders argue that they have resorted to this procedure because they pay importers in cash for their goods.

Ajaka explained: “Why do they want to pay cash? The first reason is that suppliers accept only cash, meaning that the problem is with the supplier, whose reasons to do so need to be investigated. The second reason is that traders work with illegal people. The third reason is to keep the money in cash as a safety margin in the event of a deterioration in the situation.”

He pointed out that traders “argue that banks ask them to put their daily income in (the) banks for them to transfer money in cash to their employees when paying their salaries.”

Ajaka added that reliance on cash increased tax evasion, because traders then declare less of their business, and deprived the banking sector of resources to pump back into the economy.

One Beirut bank manager, who declined to be named, told Arab News that the BdL “works by activating a banking text to dry the market from the Lebanese lira (pound), in addition to taking other measures aimed at curbing the black market that manipulates the dollar exchange rate.

“At the same time, it has decided not to respond to the banks’ requests for liquidity in the Lebanese lira, asking them to get it from the market.”

The bank manager added: “The central bank believes that the liquidity in lira that came out of it in huge quantities did not return to the central bank through the circulation. So where did this money go? It either went to storage or to supply the black market.”

The source said although Greece adopted this measure during its economic crisis, it cannot be adopted for a long time.

Ajaka believes that the authorities are likely to “issue laws and decrees to oblige traders to accept payment by bank cards because it is not possible to continue with cash in this way.”


Lebanon PM arrives in Damascus on first such visit since before Syria war

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Lebanon PM arrives in Damascus on first such visit since before Syria war

Lebanon PM arrives in Damascus on first such visit since before Syria war: AFP


Israel strikes Yemen Houthis, warns it will ‘hunt’ leaders

Updated 11 January 2025
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Israel strikes Yemen Houthis, warns it will ‘hunt’ leaders

  • Israeli military said fighter jets struck military targets belonging to Houthi regime
  • It said it also struck military infrastructure in the ports of Hodeida and Ras Issa

JERUSALEM: Israel struck Houthi targets in Yemen on Friday, including a power station and coastal ports, in response to missile and drone launches, and warned it would hunt down the group’s leaders.
“A short while ago... fighter jets struck military targets belonging to the Houthi terrorist regime on the western coast and inland Yemen,” the Israeli military said in a statement.
It said the strikes were carried out in retaliation for Houthi missile and drone launches into Israel.
The statement said the targets included “military infrastructure sites in the Hizaz power station, which serves as a central source of energy” for the Houthis.
It said it also struck military infrastructure in the ports of Hodeida and Ras Issa.

Israeli Prime Minister Benjamin Netanyahu, in a statement after the strikes, said the Houthis were being punished for their repeated attacks on his country.
“As we promised, the Houthis are paying, and they will continue to pay, a heavy price for their aggression against us,” he said.
Israeli Defense Minister Israel Katz said Israel would “hunt down the leaders of the Houthi terror organization.”
“The Hodeida port is paralyzed, and the Ras Issa port is on fire — there will be no immunity for anyone,” he said in a video statement.
The Houthis, who control Sanaa, have fired missiles and drones toward Israel since war broke out in Gaza in October 2023.
They describe the attacks as acts of solidarity with Gazans.
The Iran-backed rebels have also targeted ships in the Red Sea and Gulf of Aden, prompting retaliatory strikes by the United States and, on occasion, Britain.
Israel has also struck Houthi targets in Yemen, including in the capital.
Since the Gaza war began, the Houthis have launched about 40 surface-to-surface missiles toward Israel, most of which were intercepted, the Israeli army says.
The military has also reported the launch of about 320 drones, with more than 100 intercepted by Israeli air defenses.


West Bank family wants justice for children killed in Israel strike

Updated 11 January 2025
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West Bank family wants justice for children killed in Israel strike

  • Israeli troops or settlers have killed at least 825 Palestinians in the territory, according to Health Ministry figures

TAMMUN, Plestinian Territories: Batoul Bsharat was playing with her eight-year-old brother Reda in their village in the occupied West Bank. Moments later, an Israeli drone strike killed him and two of their cousins.
“It was the first time in our lives that we played without arguing. It meant so much to me,” the 10-year-old said as she sat on the concrete ledge outside the family home in the northern village of Tammun where they had been playing on Wednesday.
At her feet, a crater no wider than two fists marked where the missile hit.
The wall behind her is pockmarked with shrapnel impacts, and streaks of blood still stain the ledge.
Besides Reda, Hamza, 10, and Adam, 23, were also killed.
The Israeli army said on Wednesday that it had struck “a terrorist cell” in Tammun but later promised an investigation into the civilian deaths.
Batoul puts on a brave face but is heartbroken at the loss of her younger brother.
“Just before he was martyred, he started kissing and hugging me,” she said.
“I miss my brother so much. He was the best thing in the world.”
Her cousin Obay, 16, brother of Adam, was the first to come out and find the bodies before Israeli soldiers came to take them away.
“I went outside and saw the three of them lying on the ground,” he said. “I tried to lift them, but the army came and didn’t allow us to get close.”
Obay said his elder brother had just returned from a pilgrimage to Makkah.
“Adam and I were like best friends. We had so many shared moments together. Now I can’t sleep,” he said, staring into the distance, bags under his eyes.
Obay said the soldiers made him lie on the ground while they searched the house and confiscated cellphones before leaving with the bodies on stretchers.
Later on Wednesday, the army returned the bodies, which were then laid to rest. On Thursday, Obay’s father, Khaireddin, and his brothers received condolences from neighbors.
Despite his pain, he said things could have been worse as the family home hosts many children.
“Usually, about six or seven kids are playing together, so if the missile had struck when they were all there, it could have been 10 children,” he said.
Khaireddin was at work at a quarry in the Jordan Valley when he heard the news. Adam had chosen to stay home and rest after his pilgrimage to Makkah.
He described his son as “an exceptional young man, respectful, well-mannered and upright,” who had “nothing to do with any resistance or armed groups.”
Khaireddin, like the rest of the Bsharat family, said he could not comprehend why his home had been targeted.
“We are a simple family, living ordinary lives. We have no affiliations with any sides or movements.”

Violence has soared in the West Bank since war broke out in Gaza with the Hamas attack of Oct. 7, 2023.
Israeli troops or settlers have killed at least 825 Palestinians in the territory, according to Health Ministry figures.
As the Israeli army has stepped up its raids on West Bank cities and refugee camps, it has also intensified its use of air strikes, which were once a rarity.
A day before the Bsharat home was hit, a similar strike had struck Tammun.
Khaireddin regrets that the army made “no apology or acknowledgment of their mistake.”
“This is the current reality — there is no accountability. Who can we turn to for justice?“

 


Tajani says Syrian leader pledged to stop ‘illegal immigration’

Updated 11 January 2025
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Tajani says Syrian leader pledged to stop ‘illegal immigration’

  • Tajani also met his new counterpart Asaad Al-Shaibani, after which the Syrian official said he would soon make his first official tour of Europe

BEIRUT: Syria’s new leader Ahmed Al-Sharaa told visiting Italian Foreign Minister Antonio Tajani on Friday that he was ready to stem “illegal immigration” to Europe, the European diplomat said.
“Al-Sharaa says he is ready to block illegal immigration, (and) fight against drug traffickers,” Tajani said in the Lebanese capital, the second leg of his trip, adding these were “two crucial commitments for Italy.”
Tajani said he had called for a moratorium on EU sanctions on Syria for six months or one year.
However, Tajani added that “lifting sanctions is not a national decision. They are a European bloc decision.”
Tajani also met his new counterpart Asaad Al-Shaibani, after which the Syrian official said he would soon make his first official tour of Europe.
“I am pleased to announce my intention to head a high-level delegation on a foreign tour that includes a number of European countries,” he said. Al-Shaibani has already visited Saudi Arabia, the UAE, Qatar and Jordan since the start of the month. Tajani arrived after hosting talks with European counterparts and US Secretary of State Antony Blinken in Rome on Thursday, where Tajani said they are seeking a “stable and united Syria.”
The EU’s foreign policy chief Kaja Kallas earlier on Friday said the 27-nation bloc could begin lifting sanctions if Syria’s new rulers took steps to form an inclusive government that protects minorities.

 


US working with regional partners to support ‘responsible transition’ in Syria: Official

Updated 10 January 2025
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US working with regional partners to support ‘responsible transition’ in Syria: Official

  • Acting undersecretary for political affairs addressed press briefing attended by Arab News
  • John Bass would not answer questions regarding Israel’s military attacks against Syria

CHICAGO: Discussions to ensure a “responsible transition” in Syria to prevent a rise in terrorism, provide basic services to citizens and ensure good relations with regional nations are progressing, the US acting undersecretary for political affairs told a press briefing attended by Arab News on Friday.

Concluding two days of talks with Turkish officials in Ankara, John Bass said the Syria Working Group also addressed defining Syria’s borders and “strengthening internal security” to prevent a resurgence of Daesh and other “foreign terrorist organizations” in the country.

Bass was careful not to predict how US policy might change under Donald Trump, nor would he address questions regarding Israel’s military attacks against Syria. 

“We’ve also discussed in depth a range of steps that the United States and other governments have taken to enable the interim authorities in Damascus to address the immediate needs of the Syrian people, including via support from other governments for things like salaries, payments for the civilian administration at the national level, for donations of power or energy, and for some of the other measures that are required to stabilize the Syrian government, to stabilize the economy, and to give the Syrian people hope that this transition will yield a better future for all of the citizens of the country,” Bass said.

“What we’re working through … is how we can affect a responsible transition … so that it contributes to strengthening national forces over time and building, rebuilding a military and a police service that responsibly fulfills its duties and obligations to the Syrian people, but to do that in a way that doesn’t create immediate risk,” he added.

“It’s a complicated process to help a national government, particularly one that’s an interim government that needs to do a lot of internal work with other parts of Syrian society to determine what that government will look like in the future.”

Bass said the US is concerned that events in Syria do not “pose a threat to any of Syria’s neighbors, to countries in the wider region or to countries further afield, whether that’s in Europe, the United States or elsewhere around the world.”

He added that “the long-running civil war in Syria and the long-standing presence of Daesh” in the country have created threats to neighboring nations.

“It’s in that spirit that we’ve been engaging … in discussions about how we can help work together to ensure that as this transition continues inside Syria that it doesn’t just produce a better, safer environment inside Syria for all Syrians, it also addresses the security concerns of Turkiye, of Iraq, of Jordan, and of Syria’s other neighbors,” he said.

The US “greatly” admires “the generosity of the Turkish government and the Turkish people in hosting over 3 million (Syrian) refugees for now well over a decade,” he added. 

Bass said discussions were focused on ensuring that fighters of terrorist groups such as the Kurdistan Workers’ Party (PKK) are forced to return to their nations of origin.

“We’re in agreement with the government of Turkiye and a number of other governments that Syria can’t be, shouldn’t be in the future a safe haven for foreign terrorist organizations or foreign terrorist fighters. And we believe that any foreign terrorist that’s present inside Syria should leave the country,” Bass said in addressing the PKK.

“Ideally, many of those people will be returning to their countries of origin, their countries of nationality, through a responsible process that involves those governments potentially to face justice for their actions.

“But they should no longer be present in Syria, contributing to instability in the country. And that includes any foreign terrorists who have taken advantage of the long-term instability in Syria to set up shop whether it’s in northeastern Syria, whether it’s in southwestern or southern or southeastern Syria.” 

Asked how Trump administration policies might differ, Bass said: “I’m a senior official of the current United States government. I can’t speak for the next US administration, nor can I offer any insights at this time into how US policy might change under the next administration.”

He expressed confidence, however, that “colleagues in the US government” will continue to support Syria’s transition.

Bass also emphasized that the small US presence in Syria has one specific purpose, “to ensure that Daesh doesn’t again become a threat to the people of Syria, the people of Turkiye, the people of Iraq or Jordan, or any other country.”