BEIRUT: Lebanon is close to reaching an agreement with the World Bank in which the international agency would give the crisis-hit country a $150 million loan for food security and to stabilize bread prices for the next six months, the economy minister said Tuesday.
Amin Salam said talks with the International Monetary Fund were progressing in a positive way.
“Work is ongoing and the train is moving. I am optimistic,” Salam said in an interview with The Associated Press. He said the IMF is focusing on three sectors that are improving — electricity, transportation and high-speed Internet — because they can help reactivate the whole economy.
Salam said the government does not have immediate plans to lift bread subsidies, especially for flour used in making flat Arabic bread, the main staple in Lebanon.
Lebanon is in the grip of a devastating economic crisis that has been described as one of the worst in modern history. It imports most of its wheat and has faced shortages over the past weeks as the war in Ukraine leads to increases in prices of oil and food products around the world.
There have also been concerns that the government might lift wheat subsidies as foreign currency reserves drop to critical levels at the central bank. Any lifting of subsidies would sharply increase the price of bread affecting the poor in the Mediterranean nation where more than three quarters of its 6 million people, including 1 million Syrian refugees, now live in poverty.
“We are working with the World Bank to keep market stability for the next six months by getting $150 million,” Salam said. He added that the deal with the World Bank will stabilize the price of bread and wheat until a ration card policy is in force so that people in need can benefit.
Salam added that subsidies cannot continue forever, especially for flour that is used for making pastries and sweets. He said that such policies were implemented in Egypt and other countries where subsidies were lifted for wheat used in some products and left for the bread.
Salam said meetings were scheduled with officials from the World Bank on Wednesday, after which Lebanon will propose final recommendations to the bank’s board. Salam said there is tentative approval from the Lebanese state and the World Bank, adding that it could be effective in three weeks to a month.
He said that the war in Ukraine is forcing Lebanon to find new sources of wheat that are far away and more expensive.
Earlier this month, Lebanon and the IMF reached a tentative agreement for comprehensive economic policies that could eventually pave the way for some relief for the country after Beirut implements wide-ranging reforms.
Salam, who is part of the Lebanese negotiating team with the IMF, said the government, parliament and all Lebanese officials are fully aware that if Lebanon does not fully abide by the IMF program, conditions ″will become very difficult because there is no alternative plan.″
He said the banking sector has to be restructured because without a banking sector it is impossible to move forward with economic growth. Salam added that during the talks with the IMF the Lebanese side worked to make “the banking sector carry some of the losses without destroying the banking sector.”
He said whenever a final deal with the IMF is reached and there is political intention for success by authorities, Lebanon can start achieving tangible results in the next two to three years. And in five years “Lebanon can be in a very good place.”
The Lebanese pound, which has lost more than 90 percent of its value since the economic meltdown began in October 2019, can become more stable, he said.
The staff level agreement that Lebanon reached with the IMF on April 7 lists five “key pillars” that should be implemented, including restructuring the financial sector, implementing fiscal reforms, and the proposed restructuring of external public debt, anti-corruption and anti-money laundering efforts.
Salam said the country’s 14 largest banks will be held up as a standard to work on restructuring the sector since they control about 80 percent of the market. The smaller banks that have problems should be taken over by bigger lenders. He said most likely people with deposits of up to $100,000 will eventually get their money back while those with much bigger balances will end up either getting treasury bills or become shareholders in banks or state institutions.
“The 100,000 figure will be a number that will be protected for everyone,” he said.
Breaking with the position of the prime minister, he suggested that central bank Gov. Riad Salameh should go.
″His situation has become tenuous,″ Salam said, saying it will be difficult for future governments in Lebanon to work with him.
Salameh, who has been in the job since 1993, is facing investigations in Lebanon and several European countries into possible cases of money laundering and embezzlement. The governor is protected by several top officials, including the prime minister and parliament speaker.
“I’m all for change,” Salam said. “No one is irreplaceable.”
Lebanon expects deal with World Bank on food security
https://arab.news/27zfu
Lebanon expects deal with World Bank on food security
- Amin Salam said talks with the International Monetary Fund were progressing in a positive way
- He said the IMF is focusing on three sectors that are improving — electricity, transportation and high-speed internet
Lebanon’s President Joseph Aoun, respected army chief
- Aoun has since 2017 headed the army, an institution that serves as a rare source of unity in Lebanon
- The man of few words was able to count on his good relations across the divided Lebanese political class to see him elected
BEIRUT: Joseph Aoun, Lebanon’s army chief who was elected president on Thursday, is a political neophyte whose position as head of one of the country’s most respected institutions helped end a two-year deadlock.
Widely seen as the preferred pick of army backer the United States, he is perceived as being best placed to maintain a fragile ceasefire and pull the country out of financial collapse.
After being sworn in at parliament, Aoun said “a new phase in Lebanon’s history” was beginning.
Analysts said Aoun, who turns 61 on Friday and is considered a man of “personal integrity,” was the right candidate to finally replace Michel Aoun — no relation — whose term as president ended in October 2022, without a successor until now.
A dozen previous attempts to choose a president failed amid tensions between Hezbollah and its opponents, who have accused the Shiite group of seeking to impose its preferred candidate.
Aoun has since 2017 headed the army, an institution that serves as a rare source of unity in a country riven by sectarian and political divides.
He has navigated it through a blistering financial crisis that has drastically slashed the salaries of its 80,000 soldiers, forcing him to accept international aid.
Since late November, he oversaw the gradual mobilization of the armed forces in south Lebanon after a ceasefire ended more than a year of hostilities between Israel and Hezbollah.
Under the truce, the Lebanese army has been deploying progressively alongside UN peacekeepers in the south as Israeli forces withdraw, a process they have to finish by January 26.
Speaking on Thursday, Aoun said the state would have “a monopoly” on arms.
The general with broad shoulders and a shaved head has stepped up talks with visiting foreign dignitaries since becoming army chief.
The man of few words was able to count on his good relations across the divided Lebanese political class to see him elected.
Aoun “has a reputation of personal integrity,” said Karim Bitar, an international relations expert at Beirut’s Saint-Joseph University.
He came to prominence after leading the army in a battle to drive out Daesh from a mountainous area along the Syrian border.
“Within the Lebanese army, he is perceived as someone who is dedicated... who has the national interest at heart, and who has been trying to consolidate this institution, which is the last non-sectarian institution still on its feet in the country,” Bitar told AFP.
Aoun was set to retire in January last year, but has had his mandate extended twice — most recently in November.
Mohanad Hage Ali, from the Carnegie Middle East Center, noted that “being the head of US-backed Lebanese Armed Forces, Joseph Aoun has ties to the United States.”
“While he maintained relations with everyone, Hezbollah-affiliated media often criticized him” for those US ties, he told AFP.
Washington is the main financial backer of Lebanon’s army, which also receives support from other countries including Qatar.
An international conference in Paris last month raised $200 million to support the armed forces.
The military has been hit hard by Lebanon’s economic crisis, and at one point in 2020 it said it had cut out meat from the meals offered to on-duty soldiers due to rising food prices.
Aoun, who speaks Arabic, English and French, hails from Lebanon’s Christian community and has two children.
By convention, the presidency goes to a Maronite Christian, the premiership is reserved for a Sunni Muslim and the post of parliament speaker goes to a Shiite Muslim.
Aoun is Lebanon’s fifth army commander to become president, and the fourth in a row.
Military chiefs, by convention, are also Maronites.
Egypt top diplomat meets PLO, urges Palestinian unity
- During his meeting with the PLO delegation in Cairo, Badr Abdelatty “reaffirmed Egypt’s supportive stance toward the Palestinian Authority”
CAIRO: Egypt’s foreign minister met a Palestine Liberation Organization delegation Thursday, calling for “unity” and the strengthening of the Palestinian Authority amid Israel’s ongoing war with Hamas in Gaza.
The conflict began after the Palestinian group Hamas launched a surprise attack on Israel on October 7, 2023, triggering massive retaliation.
During his meeting with the PLO delegation in Cairo, Badr Abdelatty “reaffirmed Egypt’s supportive stance toward the Palestinian Authority,” his office said in a statement.
The minister also reiterated “Egypt’s rejection of any plans to displace Palestinians from their lands,” it added.
Last month, Egypt hosted talks between rival Palestinian groups Fatah and Hamas to discuss bringing post-war Gaza under PA control.
Fatah, which governs parts of the occupied West Bank under the PA, dominates both the PA and the PLO, an internationally recognized representative of the Palestinian people.
It has been excluded from Gaza since Hamas seized control in 2007.
On Thursday, Abdelatty also discussed with the PLO delegation Egypt’s efforts to end the Gaza war, reach a ceasefire agreement and facilitate the delivery of humanitarian aid to the Gaza Strip.
Mediators Egypt, Qatar and the United States have been engaged in months of talks to cement a truce in Gaza, but so far to no avail.
US Secretary of State Antony Blinken said on Wednesday that a Gaza ceasefire remained close but added it may not happen before President Joe Biden hands over to Donald Trump.
“I hope that we can get it over the line in the time that we have,” said Blinken, who leaves office with Trump’s inauguration on January 20.
Hamas said at the end of last week that indirect negotiations in Doha had resumed, while Israel said it had authorized negotiators to continue the talks in the Qatari capital.
A previous round of mediation in December ended with both sides blaming the other for the impasse, with Hamas accusing Israel of setting “new conditions” and Israel accusing Hamas of throwing up “obstacles” to a deal.
France, Arab nations among first to congratulate new Lebanon president
- French foreign ministry said Joseph Aoun's election “opens a new page" for Lebanon
- Qatari foreign ministry called for “stability”
PARIS: French President Emmanuel Macron on Thursday welcomed the “crucial election” by Lebanese lawmakers of army chief Joseph Aoun as president after a two-year vacuum at the top, calling his victory an opportunity for reform in the country.
Aoun faces the daunting tasks of overseeing a ceasefire in south Lebanon and naming a prime minister able to lead reforms demanded by international creditors to save the country from its worst economic crisis in history.
Aoun is perceived as being best placed to maintain the fragile ceasefire between Israel and Hezbollah after a devastating war this autumn.
“Congratulations to President Joseph Aoun on this crucial election,” Macron wrote on X in a message in both French and Arabic.
“It paves the way for reform and the restoration of Lebanon’s sovereignty and prosperity,” he added.
The French foreign ministry urged the formation of a strong government to drag the country out of a political and economic crisis.
Extending France’s “warm congratulations” to Aoun, the French foreign ministry said his election “opens a new page for the Lebanese” and urged “the appointment of a strong government” that can help the country recover.
Qatar also praised the election of Aoun as president on Thursday, calling for “stability” after the more than two year vacancy was filled.
“The State of Qatar welcomes the election of Lebanese army commander General Joseph Aoun,” the foreign ministry said in a statement, adding that it hoped his election would “contribute to establishing security and stability in Lebanon.”
Palestinian president Mahmoud Abbas said Lebanon would overcome the “repercussions of Israeli aggression” under the leadership of its new president.
“We are confident that our brotherly Lebanon will overcome the repercussions of the Israeli occupation’s aggression and achieve development and prosperity,” Abbas said in a statement, referring to Israel’s war with Lebanese militant group Hezbollah, which ended late last year.
The United Nations Special Coordinator for Lebanon, Jeanine Hennis-Plasschaert, issued a statement congratulating Aoun, adding that she welcomed the election as a long-awaited first step toward overcoming Lebanon’s political and institutional vacuum and providing the Lebanese people with the functioning state institutions they deserved.
“A prime minister must be designated and a government formed without delay. The tasks ahead of the Lebanese state are too monumental to waste any more time,” she stressed.
“Now is the moment for each and every decision-maker to put the interest of Lebanon above all personal or political considerations.
“The election of a president offers renewed hope and an opportunity to pave the way for progress towards consolidating the cessation of hostilities and preserving the country’s security and stability, including by strengthening state authority across Lebanon and advancing comprehensive and sustainable reforms,” she added.
* With AFP
Italian foreign minister to meet Syria's new rulers in Damascus
- Antonio Tajani said he would push Syria’s transitional government to pursue an “inclusive political process”
ROME: Italy’s Foreign Minister Antonio Tajani said Wednesday he would travel to Syria Friday where he plans to announce an initial development aid package for the country ravaged by years of war.
Tajani’s trip follows those by his French and German counterparts, who visited the Syrian capital last week to meet Syria’s new rulers after they toppled Bashar Assad's regime in a lightning offensive last month.
“It is essential to preserve territorial integrity and prevent (Syria’s) territory from being exploited by terrorist organizations and hostile actors,” Tajani told parliament.
Western powers have been cautiously hoping for greater stability in Syria, a decade after the war triggered a major refugee crisis that shook up European politics.
Tajani did not provide any details about what he called a “first package of aid for cooperation and development.”
Tajani said he would push Syria’s transitional government to pursue an “inclusive political process” that “recognizes and enhances the role of Christians as citizens with full rights.”
Ahead of his trip, Tajani is set Thursday to meet with the foreign ministers of France, Germany, Britain and the United States over the Syria situation, with the drafting of a new constitution and Syria’s economic recovery on the agenda.
The EU’s foreign affairs chief, Kaja Kallas, was expected in Rome for the meeting.
Thousands of Alawites mourn 3 killed by foreign Islamists: monitor, witness
- “Thousands of mourners gathered at the funeral of three Alawite farmers from the same family,” said the Syrian Observatory for Human Rights
- The civilians were killed on Wednesday in the village of Ain Sharqia
DAMASCUS: Thousands of Syrians from ousted President Bashar Assad’s Alawite community mourned on Thursday three civilians killed by foreign Islamist allies of the country’s new authorities, a war monitor and an attendee said.
Since Assad’s ouster, violence against Alawites, long associated with his clan, has soared, with the monitor recording at least 148 killings.
“Thousands of mourners gathered at the funeral of three Alawite farmers from the same family, including one child, killed by foreign Islamist fighters allied to Syria’s new authorities,” said the Syrian Observatory for Human Rights war monitor.
The civilians were killed on Wednesday in the village of Ain Sharqia, in the Alawite heartland of Latakia province, the Observatory said.
“Down with the factions,” some of those in attendance chanted in reference to armed groups, according to footage shared by the monitor.
Mourner Ali told AFP that people had called for those responsible for the killings to be punished and for foreign fighters to leave so that local policemen affiliated with the new authorities could take their place.
“We can’t have people die every day,” he said, asking to be identified only by his first name to discuss sensitive matters.
“We want security and safety to prevail; we support the transitional authorities. We do not want any more killings after today.”
Rami Abdel Rahman, who heads the Observatory, told AFP the mourners also demanded that Syria’s new rulers free thousands of detained soldiers and conscripts.
The Alawite community was over-represented in the country’s now-defunct armed forces.
On Tuesday, three Alawite clerics were also killed by unknown gunmen on the road from Tartus to Damascus, the monitor said.
Another cleric and his wife were found dead in the Hama countryside Thursday after they were abducted a day earlier.
Last month, angry protests broke out in Syria over a video showing an attack on an Alawite shrine, with the Observatory reporting one demonstrator killed in Homs city.
Syrian authorities said the footage was “old” and that “unknown groups” were behind the attack, saying republishing the video served to “stir up strife.”
The alliance spearheaded by the Islamist group Hayat Tahrir Al-Sham (HTS), which seized Damascus and ousted Assad on December 8 after a lightning offensive, has sought to reassure minority communities in the Sunni Muslim majority country.
Assad had long presented himself as a protector of minority groups.
