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Lebanon Daily News Brief 9/30/2021

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DAILY NEWS

US and Qatar Coordinate Sanctions Against Hezbollah Network
In coordination with Qatar, the US Treasury Department announced sanctions yesterday on a major Hezbollah financial network based in the Arabian Peninsula. In a statement, the department emphasized the importance of international partners like Qatar to help tackle cross-border abuses to the international finance system. [US Department of Treasury]

Jordan Prime Minister Visits Beirut
Jordanian Prime Minister Bisher Khasawneh met with Prime Minister Najib Miqati to discuss the plan to flow Egyptian gas through Jordan and Syria to Lebanon. The conversation looked at ways to expedite the process and help Lebanon’s energy challenges. Khasawneh said there are efforts to provide Lebanon with electricity as well but said later discussions on this will follow. [AP]

Central Bank Rejects Changes to Exchange Rates for Withdrawals
The Lebanese central bank announced yesterday that it rejects changes to the exchange rate used to withdraw cash in Lebanese pounds from US dollar accounts, though parliamentarians have been calling for the rate to be raised. Banque du Liban said that a change to the rate without a comprehensive financial plan would have big consequences on the money supply. It added that it will extend current rates until January 31, 2022 to give the new government time to introduce its reform plan. [Reuters]

OPINION & ANALYSIS

Assist ISF and LAF Families in These Desperate Times
Jean AbiNader

AbiNader writes, “There is no way to ignore the sword of Damocles hanging over the security services in Lebanon. It is shocking but true that deficits for both the ISF and LAF exceed 90% in the current budget. This affects everything from salaries and health services, to food supplies, operations, and staffing. At a program in Beirut on September 22, General Joseph Aoun, Commander of the LAF, Major General Imad Osman, Commander of the ISF, and US Ambassador Dorothy Shea addressed the difficulties facing the troops and their families…Together we are committed to raising funds to support the families of the LAF and ISF who are under severe pressure as a result of the erosion of the Lebanese currency, economy, and essential supplies. Not only does the deficit impact their livelihoods, but it reduces their effectiveness and operational readiness as they have had to cut back funds allocated to operations and supplies in order to pay soldiers.”

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Disclaimer: The views and opinions expressed in these articles are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.

Lebanon Daily News Brief 9/29/2021

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DAILY NEWS

Protesters Support Judge Bitar’s Investigation
Today around 300 protesters gathered outside of the Justice Palace in Beirut in support of Judge Tarek Bitar’s investigation of the Beirut Port blast. After two former ministers filed requests to remove Bitar, the domestic probe was suspended on Monday until the Court of Cassation makes a decision. Earlier this summer the two former ministers who filed the requests were called in for questioning by Bitar but did not show up. Protesters held up pictures of their loved ones lost to the Beirut explosion. They protested against the suspension of the investigation and said it is the “last opportunity for accountability.” [Al Jazeera]

Banks and Financial Officials Discuss Losses From Economic Collapse
Lebanon’s economy minister said today that the country’s banking sector, central bank, and other players are working in “harmony” to get to an agreement on the size of sustained losses during Lebanon’s economic crisis. Coming to an agreement on this is critical to IMF talks. Last year, disagreement over the scales of the losses and how they should be distributed contributed to the break down of IMF talks. [Reuters]

UN Report Warns of Dire Conditions for Syrian Refugees
In a report produced by the UN’s refugee agency, World Food Program, and children’s agency, the contributors warned that more than 1 million Syrian refugees are in dire conditions and that nine out of ten are in extreme poverty. It added that the cost of an essential food basket has increased more than seven time since 2019. [AP]

OPINION & ANALYSIS

Assist ISF and LAF Families in These Desperate Times
Jean AbiNader

AbiNader writes, “There is no way to ignore the sword of Damocles hanging over the security services in Lebanon. It is shocking but true that deficits for both the ISF and LAF exceed 90% in the current budget. This affects everything from salaries and health services, to food supplies, operations, and staffing. At a program in Beirut on September 22, General Joseph Aoun, Commander of the LAF, Major General Imad Osman, Commander of the ISF, and US Ambassador Dorothy Shea addressed the difficulties facing the troops and their families…Together we are committed to raising funds to support the families of the LAF and ISF who are under severe pressure as a result of the erosion of the Lebanese currency, economy, and essential supplies. Not only does the deficit impact their livelihoods, but it reduces their effectiveness and operational readiness as they have had to cut back funds allocated to operations and supplies in order to pay soldiers.”

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Watch the event here
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The National
Lebanon is a Model of Militias Taking Over the State
Michael Young

Young writes, “Lebanon stands out as a model of how former militia leaders have taken over the state. A majority of sectarian military leaders became pillars of the post-war order at the end of the country’s civil war in 1990. This happened at a time when centralized states were still the norm in the region. But that is no longer true, as countries throughout the Arab world have been shattered by conflict. Why should Lebanon matter? Precisely because it was the first country to show that militia leaders could be recycled after a war into legitimate national figures, regardless of the crimes they committed during conflict. Leading a militia became a path to social promotion for many individuals previously on society’s periphery…The post-war system may have been dominated by former militia leaders, but its principal protector today is another militia, Hezbollah, which was not initially part of the post-war carve-up. The former militiamen and businessmen have been reliant on Hezbollah to protect their system, but in the process they threaten to be marginalized.”

Read more here

Disclaimer: The views and opinions expressed in these articles are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.

Assist ISF and LAF Families in These Desperate Times

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There is no way to ignore the sword of Damocles hanging over the security services in Lebanon. It is shocking but true that deficits for both the ISF and LAF exceed 90% in the current budget. This affects everything from salaries and health services, to food supplies, operations, and staffing. At a program in Beirut on September 22, General Joseph Aoun, Commander of the LAF, Major General Imad Osman, Commander of the ISF, and US Ambassador Dorothy Shea addressed the difficulties facing the troops and their families.

Ambassador Shea noted that the US is the largest donor to the LAF providing some $2.6 billion since 2006 with an additional $56 million approved just the previous week. The current first-ever visit to the LAF of a naval training ship demonstrates that the US will continue to support training, materials, and equipment to ensure the LAF’s readiness and capacity. She assured the audience that the US invested in the LAF because of its professionalism and its respect for the human and civil rights of the people in Lebanon.

Ambassador Ed Gabriel, President of ATFL spoke after the officials, and asked both the virtual audience overseas and those in Lebanon to help address the needs of the troops. ATFL has joined with Spirit of America (www.spiritofamerica.org), the not-for-profit US organization made up of veterans of the US armed services who provide humanitarian assistance in conflict areas where US forces serve overseas.

Together we are committed to raising funds to support the families of the LAF and ISF who are under severe pressure as a result of the erosion of the Lebanese currency, economy, and essential supplies. Not only does the deficit impact their livelihoods, but it reduces their effectiveness and operational readiness as they have had to cut back funds allocated to operations and supplies in order to pay soldiers.

General Aoun provided details of how the lira, at an estimated rate of 15,000:1, has severely undermined personnel costs and gravely limited the Army’s patrols and logistics. Major General Osman noted that budget shortfalls mean that even basic arms and munitions are not available to the ISF, challenging the capacity of the troops to carry out their responsibilities.

A basic calculation is that a family can be supported with a contribution of $100 per month ($1200 annually). All donations will be transparently channeled through Spirit of America, which will provide details on how the monies are allocated. A video of the September 22 conference is available here.

In the meantime, you can donate at this link.

The views and opinions expressed here are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon.

This Week In Lebanon: 9/24/2021

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September 24, 2021
Miqati’s Meeting with Macron Today
Lebanon’s Creditors Urge IMF Talks
Fuel Prices Raised 16 Percent

Miqati’s Meeting with Macron Today
Prime Minister Najib Miqati is set to meet with French President Emmanuel Macron in Paris today. The two leaders are said to discuss resolutions from the CEDRE Conference and the possibility of granting three to four billion dollars to Lebanon from CEDRE donations. Macron is reportedly seeking to give French companies priority in the reconstruction of Beirut’s Port and electricity sector. [Naharnet]

RESPONSE

“President Macron is in a strengthened position to call for a reform agenda that includes stabilizing the lira, controlling inflation, stopping subsidies and establishing a cash card program for the most vulnerable, support for the LAF, and tackling the fuel and electricity crisis. PM Miqati should follow this visit with one to the US, in which the State Department and IMF underscore the same message. A coordinated international message embraced by PM Miqati will align him with reform constituencies back home and provide a road map for Lebanon’s short term recovery.”

-ATFL President Edward M. Gabriel

Lebanon’s Creditors Urge IMF Talks
A group of Lebanon’s bondholders, including Amundi, Ashmore, BlackRock, BlueBay, Fidelity and T-Rowe Price, said in a statement that it urges the Lebanese government to engage in IMF talks as soon as possible. The group said they hope for a rapid debt restructuring process. [Reuters]

RESPONSE

“The new government is facing many issues; all are priorities, and none more crucial than the financial sector including restarting the economy, stopping the slide of the lira, injecting liquidity in the banking sector, and eliminating subsidies while protecting the people from further hardship. This requires fortitude, patience, and diligence in pursuing credible and transparent negotiations with the IMF and the bondholders. However, the priority must be the people – reduce the threat of losses in their bank deposits, open access to their funds, press for a transparent and effective cash card system, and build trust. PM Miqati has noted that building trust is the most difficult challenge,; and hesitation and business as usual will fall far short of what’s needed.”

-ATFL Policy Director Jean AbiNader

Fuel Prices Raised 16 Percent
Today Lebanon raised the price of fuel by 16 percent, the second time in five days that it has raised prices. The government is gradually lifting fuel subsidies, a priority noted in the new government’s policy statement, until they are completely removed. Lebanese are now paying about ten times more for fuel compared to pre-crisis rates. [AP]

RESPONSE

“It’s hard for people waiting for gas or unable to open their shops for lack of generator fuel to understand the logic of reducing and eliminating subsidies. The government should take a two-pronged approach: a campaign to explain that the issue is one of demand, not supply as Lebanon receives more fuel supplies than it consumes, in parallel with a full scale effort to end smuggling of fuel and other subsidized products across the Syrian border. More fuel = more supply = lower prices. People can understand that and stretch their patience even further, if they are treated as citizens, not statistics.”

-ATFL Policy Director Jean AbiNader

Disclaimer: The views and opinions expressed are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.

Lebanon Daily News Brief 9/22/2021

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DAILY NEWS

Fuel Prices Raised 16 Percent
Today Lebanon raised the price of fuel by 16 percent, the second time in five days that it has raised prices. The government is gradually lifting fuel subsidies, a priority noted in the new government’s policy statement, until they are completely removed. Lebanese are now paying about ten times more for fuel compared to pre-crisis rates. [AP]

US 5th Fleet Begins Inaugural Central Partnership Station Exercise in Lebanon
For the first time the US 5th Fleet is conducting a Central Partnership Station exercise in Lebanon. The exercise aims to combine “partner-building military training” with humanitarian work in US Central Command. The Lebanese Armed Forces will be trained to conduct missions like mine countermeasures, naval construction, and disaster-related public health activities. Essential goods like baby formula will also be delivered to Lebanon. [DefenseNews]

Miqati to Meet with Macron on Friday
After Monday’s vote of confidence for the new government under Prime Minister Najib Miqati, the PM will meet with French President Emmanuel Macron in Paris this Friday. The two leaders are said to discuss resolutions from the CEDRE Conference and the possibility of granting three to four billion dollars to Lebanon from CEDRE donations. Macron is reportedly seeking to give French companies priority in the reconstruction of Beirut’s Port and electricity sector. [Naharnet]

OPINION & ANALYSIS

Voices of Healing: From a Small Seed to an International Mission
Jean AbiNader

AbiNader describes the efforts of a Lebanese architect, Terry Bitar, and her work through the Charity Donation Foundation: “Bitar believes that civil society is the most resilient part of Lebanon, and Charity Donation Foundation’s consistent and ongoing weekly campaigns spread a message of hope and showcase the strength, resilience, and resolve of all Lebanese communities helping each other, side by side, to overcome all problems while carving new pathways for a brand new Lebanon. The Foundation has a vision for Lebanon in which the leadership works on behalf of the people, lacking sectarianism, serving a society that is civically engaged and ready to help, serve, and build together.”

Read more here

Real Clear World
We Need to Save Lebanon
Bill Cassidy and Marc Malek

Cassidy and Malek write, “The United States and the West cannot continue to neglect this imminent crisis. As we’ve seen time and time again in Afghanistan, Syria, Yemen, and elsewhere, state failure causes disastrous ripple effects. Failed states lead to displacement and can morph into bases for terrorists to launch attacks on the West. Lebanon is particularly dangerous in both of these respects. The last thing the world needs is another failed state.”

Read more here

Disclaimer: The views and opinions expressed in these articles are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.

Lebanon Daily News Brief 9/8/2021

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DAILY NEWS

Lebanon Working on Funding From World Bank For Power Supply
Following a meeting with counterparts in Damascus, Lebanon’s caretaker Energy Minister Raymond Ghajar announced in a news conference that Lebanon is working to secure funding from the World Bank to finance fuel imports of Egyptian gas which will be transmitted through Jordan and Syria. The United States supports the plan. [Reuters] Jordan’s energy minister recently announced that the infrastructure to allow gas flow to Lebanon, which hasn’t been used in 10 years, will be finished in three weeks. [AP]

Ongoing Cabinet Negotiations
Cabinet negotiations are ongoing today and Prime Minister-designate Nijab Miqati and President Michel Aoun are reportedly close to an agreement. The talks are centered on the economy portfolio, the naming of two Christian ministers, and guaranteeing a vote of confidence from the Free Patriotic Movement, demanded by Miqati in return for granting the President the number of ministers asked for. [Naharnet] Parliament Speaker Nabih Berri however warned Miqati against giving in to Aoun’s demands and indicated that his party would not participate in the new government if he did. [Naharnet]

US Announces Almost $50 Million in Aid for LAF
Yesterday the White House announced in a statement that almost $50 million has been authorized to assist the Lebanese army. Commodities and services from US government inventory and resources will account for $25 million and another $22 million will be accounted for in defense articles and services from the Department of Defense. [Al Arabiya]

OPINION & ANALYSIS

Time to Show Up for Work
Jean AbiNader

AbiNader writes, “With so much at stake, there are many good wishes for Miqati’s success, if the new cabinet is committed to implement change in the right directions. Perhaps two banners might be helpful in focusing the government’s efforts. I would suggest the first being “Time to Show up for Work,” indicating the resolve of the new government to move towards higher standards of accountability in its performance, beginning with electricity, telecommunications, and port reforms that will attract foreign investment into the country and support tourism. Ensuring that the municipal and parliamentary elections take place as scheduled will be a key marker of their commitment. Dealing with the inadequacies of the subsidy regime, by its elimination and replacement with a World Bank monitored cash card system, will pave the way to restore liquidity to the economy and create conditions for a currency board or other facility to reinvigorate the value of the Lebanese lira. None of these are simple, but the legislative and policy guidelines are already in place or accessible to move quickly if there is a will and a commitment to show up for work.”

Read more here

Disclaimer: The views and opinions expressed in these articles are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.

Lebanon Daily News Brief 9/7/2021

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DAILY NEWS

US Announces Almost $50 Million in Aid for LAF
Today the White House announced in a statement that almost $50 million has been authorized to assist the Lebanese army. Commodities and services from US government inventory and resources will account for $25 million and another $22 million will be accounted for in defense articles and services from the Department of Defense. [Al Arabiya]

Government Formation Talks Continue and New Lineup Circulated
Prime Minister-designate Miqati and President Michel Aoun are expected to meet again tomorrow following their meeting yesterday. While reports say the two are close to an agreement, Aoun has reportedly rejected a candidate proposed by Miqati for the economy portfolio. [Naharnet] A new draft cabinet lineup has been circulating local media reports with names that supposedly have the approval of both Aoun and Miqati. [Naharnet]

BDL Out of Fuel Subsidy Funds
A central bank source reported that the Banque du Liban has “run out” of funds earmarked for fuel subsidies. The source added that BDL has stopped granting permissions for subsidized imports. [Naharnet]

OPINION & ANALYSIS

Time to Show Up for Work
Jean AbiNader

AbiNader writes, “With so much at stake, there are many good wishes for Miqati’s success, if the new cabinet is committed to implement change in the right directions. Perhaps two banners might be helpful in focusing the government’s efforts. I would suggest the first being “Time to Show up for Work,” indicating the resolve of the new government to move towards higher standards of accountability in its performance, beginning with electricity, telecommunications, and port reforms that will attract foreign investment into the country and support tourism. Ensuring that the municipal and parliamentary elections take place as scheduled will be a key marker of their commitment. Dealing with the inadequacies of the subsidy regime, by its elimination and replacement with a World Bank monitored cash card system, will pave the way to restore liquidity to the economy and create conditions for a currency board or other facility to reinvigorate the value of the Lebanese lira. None of these are simple, but the legislative and policy guidelines are already in place or accessible to move quickly if there is a will and a commitment to show up for work.”

Read more here

New York Times
Lebanon as We Once Knew It Is Gone
Lina Mounzer

Mounzer writes, “Beirut as we once knew it is now gone. Even during the 1975-90 civil war, the city enjoyed a certain cachet. There was shelling but there was also glamour, a zest for life like an electric current. But now the strips of nightlife are mostly shuttered and dark. During the war there were cease-fires that permitted some rest, however fleeting. But in a world run on fossil fuels, what life is possible when they are no longer available? What life without electricity, cars, cooking gas, the internet, drinking water? There’s no break from this kind of economic warfare. Because that’s exactly what this is. Fuel and medicine, though scarce, are not entirely unavailable. They are unattainable, hoarded by politically connected individuals and organizations, likely to be exported or sold on the black market.”

Read more here

Disclaimer: The views and opinions expressed in these articles are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.

Lebanon Daily News Brief 9/3/2021

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DAILY NEWS

First Shipment of Iranian Fuel to Be Delivered Through Syria
The first shipment of Iranian fuel announced by Hezbollah’s Hassan Nasrallah two weeks ago will be received by Syria and delivered to Lebanon by truck, sources say. The purpose of this is to avoid sanction complications and to avoid implicating allies in Lebanon, they added. A local newspaper confirmed the vessel had entered Syrian waters but Tanker Trackers has yet to confirm this report. [Reuters]

Lebanese Delegation to Go to Damascus Tomorrow
In what is the first official diplomatic visit in ten years, a Lebanese delegation is scheduled to visit Syria tomorrow. The officials will go to Damascus to discuss plans to import gas from Jordan through Syrian territory. Finance Minister Ghazi Wasni, Energy Minister Raymond Ghajar, and General Security head Major General Abbas Ibrahim will join the delegation. [Al Arabiya]

Maj. Gen. Ibrahim to Resume Mediation Efforts in Government Talks
As Prime Minister-designate Najib Miqati’s deadline that he set form himself to form a government passes, he says that for now, resigning is out of the question. [Al Arabiya] After yesterday’s meeting between Miqati and President Michel Aoun showed negative signs, Major General Abbas Ibrahim will resume his role as mediator today. [Naharnet]

EU Delegation to Visit Lebanon Tomorrow
Tomorrow a delegation from the European Union will arrive in Lebanon for a four-day visit. The visit is mean to urge Lebanon’s political leaders to put aside self interests and form a new government. One delegation member said, “we ask the Lebanese authorities to help us help Lebanon, to help Lebanon’s people.” [The Daily Star]

OPINION & ANALYSIS

UNIFIL Mandate Renewed With LAF Support Provision
Jean AbiNader

AbiNader writes, “The first defense of UNIFIL’s role is its relationship with the LAF which has endured for 15 years and raised the LAF’s profile as the most respected government institution in the country. A key element in this has been the regular tripartite meetings among the IDF and LAF, mediated by the UNIFIL, which have been a stabilizing factor in the region as the only forum between Lebanese and Israeli representatives. The UNSC encouraged the parties to expand these meetings in order to ‘resolve the conflict and build confidence.'”

Read more here

Disclaimer: The views and opinions expressed in these articles are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.

Lebanon Daily News Brief 9/2/2021

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DAILY NEWS

US Senators Urge Government Formation in Lebanon
Yesterday a US Congressional delegation in Beirut led by US Senator Chris Murphy met with President Michel Aoun, Prime Minister-designate Najib Mikati, Speaker of Parliament Nabih Berri, Lebanese Armed Forces Commander General Joseph Aoun, and other political and civil society representatives. [US Embassy] They voiced hope that a government would be formed this week so that Lebanon can begin addressing its economic crises. One senator added that Hezbollah’s recent fuel deal with Iran would come with “strings attached.” [Reuters]

Another Draft Cabinet Lineup is Circulated
Sources close to government formation talks suggest that a cabinet could be agreed upon shortly. Reportedly the major obstacles of finding agreement on the interior and justice portfolios have been resolved. [Naharnet] Another cabinet draft has been circulated and published on Annahar. [Naharnet]

2022 Parliamentary Election Dates
The Lebanese Ministry of Interior has set dates for next years parliamentary elections including upcoming deadlines for registration in Lebanon in the diaspora. Election day will be held as scheduled on May 8 in Lebanon. View the full list of dates in this 961 article.

OPINION & ANALYSIS

UNIFIL Mandate Renewed With LAF Support Provision
Jean AbiNader

AbiNader writes, “The first defense of UNIFIL’s role is its relationship with the LAF which has endured for 15 years and raised the LAF’s profile as the most respected government institution in the country. A key element in this has been the regular tripartite meetings among the IDF and LAF, mediated by the UNIFIL, which have been a stabilizing factor in the region as the only forum between Lebanese and Israeli representatives. The UNSC encouraged the parties to expand these meetings in order to ‘resolve the conflict and build confidence.'”

Read more here

The Lebanese Center for Policy Studies
The Central Bank’s Circulars Regulating Depositors’ Accounts

LCPS writes, “In its latest and most controversial decision, the BDL issued Circular No. 158 (on 8 June 2021), granting depositors exceptional measures concerning foreign currency cash withdrawals. The circular aims to partially compensate depositors for their dollar deposits by allowing them to withdraw the equivalent of USD 800 on a monthly basis: USD 400 in “fresh dollars” (cash) and USD 400 in the national currency at an exchange rate fixed by BDL at LBP 12,000 (the USD 400 in “fresh dollars” payment is divided evenly between BDL and the banks). The circular applies to all foreign currency accounts opened before 31 October 2019, and covers savings preceding that date. Moreover, it sets a cap on the amount of funds redeemable under its terms to USD 50,000, and stipulates that the total annual withdrawal limit in US dollars from across all banks must not surpass USD 4,800 per depositor. Circular No. 158 took effect on July 1, but was met with a lot of skepticism and reluctance by depositors for lack of clarity in many of its terms.[3] In addition, many economists and financial experts raised concerns about the potentially damaging impact of such a decision on inflation and the overall economy. The fear is that the payment of USD 400 in Lebanese pounds will increase the money supply in pounds by approximately LBP 27 trillion over a one-year period, causing hyperinflation and the weakening of the national currency against the dollar.”

Read more here

Disclaimer: The views and opinions expressed in these articles are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.

Lebanon Daily News Brief 9/1/2021

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DAILY NEWS

US Congressional Delegation Meets With President Michel Aoun
Today a US Congressional delegation led by Senator Chris Murphy met with President Michel Aoun at Baabda Palace. Aoun told the delegation that the “cabinet formation process has made major progress” and stressed that parliamentary elections will be held on time next year. The delegation reiterated the United States’ support for the Lebanese people and assured that LAF assistance will continue. [Naharnet]

UN Allocates $10 Million to Lebanese Hospitals and Water Stations
Th UN announced that it has allocated $10 million to Lebanon through its humanitarian funds to help hospitals and water stations. The funds will be used to ensure hospitals and water stations have enough fuel to keep the power on with $6 million going to 65 hospitals, primary health care centers, and dispensaries, and $4 million to other health centers, water stations, and four water facilities. [The Daily Star]

Iranian Fuel Shipments Have Yet to Be Confirmed
Hezbollah chief Hassan Nasrallah announced almost two weeks ago that a shipment of fuel from Iran was setting sail for Lebanon. Since then, he has announced two more shipments. Tanker Trackers, a service that tracks and reports shipments of crude oil said today that its satellite imagery shows the vessels have yet to depart. It added that the first vessel should be in the southern section of the Red Sea by now, but they do not have visual confirmation of the ship. The Lebanese caretaker energy minister said today that Hezbollah has bypassed the state it its move to import the fuel. [Al Arabiya]

OPINION & ANALYSIS

The Lebanese Center for Policy Studies
The Central Bank’s Circulars Regulating Depositors’ Accounts

LCPS writes, “In its latest and most controversial decision, the BDL issued Circular No. 158 (on 8 June 2021), granting depositors exceptional measures concerning foreign currency cash withdrawals. The circular aims to partially compensate depositors for their dollar deposits by allowing them to withdraw the equivalent of USD 800 on a monthly basis: USD 400 in “fresh dollars” (cash) and USD 400 in the national currency at an exchange rate fixed by BDL at LBP 12,000 (the USD 400 in “fresh dollars” payment is divided evenly between BDL and the banks). The circular applies to all foreign currency accounts opened before 31 October 2019, and covers savings preceding that date. Moreover, it sets a cap on the amount of funds redeemable under its terms to USD 50,000, and stipulates that the total annual withdrawal limit in US dollars from across all banks must not surpass USD 4,800 per depositor. Circular No. 158 took effect on July 1, but was met with a lot of skepticism and reluctance by depositors for lack of clarity in many of its terms.[3] In addition, many economists and financial experts raised concerns about the potentially damaging impact of such a decision on inflation and the overall economy. The fear is that the payment of USD 400 in Lebanese pounds will increase the money supply in pounds by approximately LBP 27 trillion over a one-year period, causing hyperinflation and the weakening of the national currency against the dollar.”

Read more here

Disclaimer: The views and opinions expressed in these articles are those of the author and do not necessarily reflect the position of the American Task Force on Lebanon, a non-profit, nonpartisan leadership organization of Lebanese-Americans.