Beirut, Lebanon — The cabinet of bankrupt Lebanon, at its
final session on Friday, passed a financial recovery plan needed to secure
international aid, but its implementation will depend on the fractious incoming
parliament.
اضافة اعلان
The session came five days after Lebanon held its first
election since an economic crisis, widely blamed on corruption and negligence
by the ruling elite, dragged the country to the brink of becoming a failed
state.
"Any delay in implementing the financial recovery plan
will be very costly to Lebanese," Prime Minister Najib Mikati said at a
press conference after the cabinet met.
The International Monetary Fund and Lebanon in April struck
a conditional deal for $3 billion in aid. Enacting reforms, including a
financial recovery plan, is one of many prerequisites for the package, and
analysts have expressed skepticism that the reforms can take place.
It will be up to the new government and parliament to
implement the plan approved by the outgoing cabinet.
The financial plan passed by ministers includes
restructuring and recapitalizing the banking system, and protecting small
depositors "as much as possible", according to an official five-page
document seen by AFP.
Sunday's election yielded a polarized and fragmented
legislature likely prone to the kind of deadlock that has characterized
Lebanese politics for decades.
This could complicate the formation of a new government and
delay the implementation of the reforms.
Lebanon has been battered by triple-digit inflation, soaring
poverty rates and the collapse of its currency since a 2020 debt default.
In a move adding to the economic pain, cabinet also raised
telecom prices. Starting July, the internet bill of Lebanon residents will more
than double, as will mobile phone bills.
Telecommunications Minister Johnny Corm warned Thursday the
cash-strapped sector might collapse if there were no hikes, because current
prices were set according to pre-inflation rates.
The outgoing Lebanese cabinet will continue to function with
limited caretaker powers until a new one is formed, a process that could take
months.
"I call on elected lawmakers to expedite the formation
of a new government," Mikati said.
Also on Friday, Saudi Arabia's de facto ruler Crown Prince
Mohammed bin Salman and French President Emmanuel Macron reiterated their call
for "structural reforms" in Lebanon.
"They reaffirmed the need to implement the structural
reforms necessary for the country's recovery, as expected by the Lebanese
population and the international community," the French presidency
announced after a telephone conversation between the two leaders.
Macron and Salman also "reaffirmed their willingness to
continue their coordination to support the Lebanese population".
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