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.