MAY 31, 2021
Ambassador Hale and Senator Kaine Speak Out on Lebanon
S&P Global Report Says Bail-In for Depositors Likely
World Food Program Announces Additional Assistance

Ambassador David Hale and Senator Tim Kaine Speak Out on Lebanon
Former Undersecretary for Political Affairs David Hale and Senator Tim Kaine spoke at a Middle East Institute conference on the state of Lebanon and the future of US policy in the country. Both expressed support for the Lebanese Armed Forces and humanitarian aid to the Lebanese people through NGOs as Lebanon’s situation deteriorates under multiple crises and political leaders continue to delay government formation and reform. [Middle East Institute]

ANALYSIS

“The Lebanese government should be ashamed for not approving a $246 million World Bank food program that required the government to be accountable. More than a quarter of the Lebanese are unable to feed themselves today. Senator Kaine and Ambassador Hale spoke at the Middle East Institute’s inaugural Lebanon Policy Conference, citing the need to focus on humanitarian aid for the people of Lebanon. Kaine said, ‘…if we can’t really trust the government, we can nevertheless work through NGOs and international organizations that are doing good work to alleviate suffering in Lebanon.’ US attention must focus now on the plight of the neediest in Lebanon and the Lebanese Armed Forces. Shame on the Lebanese government for their callous disregard for the people of Lebanon.”
-ATFL President Edward M. Gabriel

S&P Global Report Says Bail-In for Depositors Likely
In a new report S&P Global said that there is likely to be a “bail-in” for Lebanese banks depositors in order for the banking sector to absorb the costs of financial restructuring. This might look like paying depositors below market exchange rates or converting their deposits into equity, the report said. [Al Arabiya]

ANALYSIS

“Well, the news is out…depositors in Lebanon who have had little access to their money and at poor rates of exchange will end up paying for the largess of the Central Bank free from parliamentary conditions. Not only is this scandalous, some provision must be made to set tiers of depositors so that those with assets below a certain amount will not be penalized at a rate similar to those who took advantage of the high interest rates given through the financial engineering phase. Now, how to get the funds that have moved offshore?”
-ATFL Policy Director Jean AbiNader

World Food Program Announces Additional Assistance
The World Food Program announced additional cash assistance to Lebanese families. It will add 195,000 people to its foreign assistance plan in addition to the 100,000 it already offered assistance to. The program will offer about 200,000 Lebanese pounds per family unit per month. [Associated Press]

ANALYSIS

“The World Food Program has added an additional 195,000 people to its food distribution program so that nearly 300,000 Lebanese residents now in poverty will benefit. WAIT, at the current black market rate, that amount equates to a little over $15 per month per family…even a bag of onions costs more in Lebanon. Survival has become even bleaker as the lira continues to weaken, prospects for real change fades, and politicians block additional assistance that requires accountability. Sigh. A long summer ahead.”
-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.