Lebanon on Brink of Forming New Cabinet

Hassan Diab arrives to talk to the media after being named Lebanon's new prime minister, at the presidential palace in Baabda, Lebanon December 19, 2019. REUTERS/Mohamed Azakir
Hassan Diab arrives to talk to the media after being named Lebanon's new prime minister, at the presidential palace in Baabda, Lebanon December 19, 2019. REUTERS/Mohamed Azakir
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Lebanon on Brink of Forming New Cabinet

Hassan Diab arrives to talk to the media after being named Lebanon's new prime minister, at the presidential palace in Baabda, Lebanon December 19, 2019. REUTERS/Mohamed Azakir
Hassan Diab arrives to talk to the media after being named Lebanon's new prime minister, at the presidential palace in Baabda, Lebanon December 19, 2019. REUTERS/Mohamed Azakir

Lebanon is on the brink of forming a new government, caretaker Finance Minister Ali Hassan Khalil announced on Thursday.

Lebanon has been without a government since Saad Hariri resigned as prime minister on Oct. 29 in the face of sweeping protests against the country's elite, complicating efforts to mount an economic recovery.

"Today I think that we have progressed to a very big extent and we can say that we are on the doorstep of forming a new government," said Khalil.

Speaking to reporters after a meeting between Prime Minister Hassan Diab and Speaker Nabih Berri, Khalil said the new cabinet would be comprised of 18 specialist ministers.

Senior political sources told Reuters that economist Ghazi Wazni was set to be named finance minister in the new cabinet. Wazni has served as an adviser to parliament's finance and budget committee.

He will take on the role amid a crisis that has shattered confidence in the country's banks and growing concerns over its ability to repay one of the world's highest debt burdens, with $2.5 billion in Eurobonds due in 2020.

Khalil said decisions about the Eurobond maturities should come as part of a "comprehensive plan" put forward by the new government.

Lebanon's debt problems jumped back into focus this week after reports emerged of a bid by Central Bank Governor Riad Salame to try and delay some of this year's bond repayments, a move that could constitute a selective default.



Zaki to Asharq Al-Awsat: Iraq Played its Part, up to Syria to Determine its Participation at Arab Summit

Assistant Secretary-General of the Arab League Ambassador Hossam Zaki. (Arab League)
Assistant Secretary-General of the Arab League Ambassador Hossam Zaki. (Arab League)
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Zaki to Asharq Al-Awsat: Iraq Played its Part, up to Syria to Determine its Participation at Arab Summit

Assistant Secretary-General of the Arab League Ambassador Hossam Zaki. (Arab League)
Assistant Secretary-General of the Arab League Ambassador Hossam Zaki. (Arab League)

Iraq is hosting on May 17 a regular Arab League summit amid complex regional challenges and crises, including Israel’s war on Gaza, the severing of relations between Sudan and the United Arab Emirates and some parties in Baghdad’s wariness of the new rulers in Syria.

Assistant Secretary-General of the Arab League Ambassador Hossam Zaki told Asharq Al-Awsat that efforts are underway to mend ties between Sudan and the UAE.

He also hailed the Iraqi government’s handling of Syrian interim President Ahmed al-Sharaa's participation at the summit given the tensions between the neighbors following the ouster of Bashar al-Assad in December.

The is the second Arab League regular summit that is held amid the war on Gaza, which demands that leaders come up with a “cohesive Arab stance that takes into account the developments of the past months and which adopts Arab principles related to the Palestinian cause,” Zaki said.

Since the last summit, US President Donald Trump unveiled his plan to transform Gaza into the “Riviera of the Middle East,” which was vehemently rejected by Arab states. The countries countered by adopting a reconstruction plan for the enclave that ensures that its people remain in place.

Israel has since reignited the war, complicating peace efforts. “Israel is in control of the situation on the ground, making it difficult to challenge it through any means or decisions,” acknowledged Zaki. “All we have is political and diplomatic work.”

He recognized that political efforts are often doubted and dismissed, but they are actually “very important because they allow the Palestinian cause to remain alive, while the other party tries to kill it.”

“Israel’s attempts to mislead the public and distort facts can only be confronted by political and diplomatic work,” Zaki said. “We must continue to forge ahead along this path and hope that time is on our side.”

Several parties are banking on Washington to wield its influence on Israel to pressure it to stop the war. Zaki revealed that bilateral contacts are being held between Arab countries and the American administration in the hopes of achieving some form of breakthrough.

“It remains to be seen whether these contacts are a success,” he told Asharq Al-Awsat.

Tensions between Sudan and the UAE will also weigh heavily on the Baghdad summit. The Sudanese government announced earlier this month that it was severing ties with Abu Dhabi over its support to the Rapid Support Forces in its war against the military.

Zaki described the situation as “difficult and thorny. It may not impact the overall work of the Arab League, but it will certainly impact discussions about the Sudanese crisis given the differences in positions.”

Efforts are underway to help bridge the gap between Sudan and the UAE, but they have yet to yield the desired results, he revealed.

On Syria, Zaki said the summit is significant because it will be the first since Assad’s ouster.

“Syria is an important country, and it plays a traditional role in Arab affairs. At the same time, however, it is facing several challenges that are threatening its unity,” he noted.

The Arab League had reinstated Syria’s membership in May 2023 after it was suspended in 2011 when the Assad regime violently cracked down on peaceful anti-regime protests.

Sharaa had taken part in an emergency Arab League summit in Cairo in March.

His participation at the Baghdad summit has stirred controversy in Iraq given the strained ties between it and the new rulers in Damascus. Some parties in Iraq have openly opposed his participation.

Zaki said that Iraq, as the host, has fulfilled its duty in inviting Syria to the summit. It is now up to Syria to determine who will represent it at the meeting.

He did not reveal which leaders have confirmed their attendance of the summit, saying that the meeting does not gain importance with who shows up, but with what its outcomes are.

It is important, however, that all countries are represented, he added.