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Shortage of Financial Stamps Complicates Public Transactions in Lebanon

The Lebanese central bank in Beirut. (Reuters)
The Lebanese central bank in Beirut. (Reuters)
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Shortage of Financial Stamps Complicates Public Transactions in Lebanon

The Lebanese central bank in Beirut. (Reuters)
The Lebanese central bank in Beirut. (Reuters)

State institutions and private companies in Lebanon are suffering from a shortage of official stamps that are needed to be glued onto all official transactions and company bills. The issue has led to chaos in public institutions and stripped the treasury of millions of dollars in revenues, exacerbating the financial crisis. Officials have meanwhile, distanced themselves from the issue.

The stamps shortage started weeks ago, especially after Hassan Diab’s government was granted confidence and institutions commenced regular work again after most of them had at least partially shut down during the October 17 popular uprising.

A source from the Ministry of Finance told Asharq Al-Awsat that the ministry has started to “at least partially address the crisis”. He added that they will be “printing 8 million 250 LBP stamps that would be enough for 2020, pending that the new bid on 1,000 LBP and more stamps is completed”.

This lack of stamps in ministries, state institutions, notaries and private companies has stopped thousands of transactions and has exacerbated the public resentment towards the state’s apathy towards people’s suffering.

A source from the Ministry of Finance has revealed that the ministry has “attracted offers to print 8 million 1,000 LBP stamps, but until this is over, it has found a temporary solution that would allow some institutions to collect the price of the stamp without actually placing it on the transaction and providing a receipt with the stamp’s value.” The solution has been adopted in real estate, car registration transactions and other important deals that cannot be postponed.

Private companies have sounded the alarm after the could no longer issue any bill unless a stamp was placed onto it for the treasury to collect its value. A source informed on the crisis mentioned that “there is a real problem with the ministry collecting financial dues, bills and the value added tax because companies are unable to issue these bills without stamps”.

The Lebanese state’s revenue has receded to less than half after the popular uprising started as citizens refrained from paying due bills, whether electricity or water, car and automobile maintenance and even landline bills. The revenues from stamps, however, remained the same as people needed them for official transactions.

On Sunday, mayors in the northern Akkar region brought this crisis up with the MP Hadi Hbeish and raised their complaints to him about the delay in their work and citizens’ transactions.

“We have to stand by our people in these difficult and harsh circumstances,” Hbeish said, acknowledging that the shortage of stamps was hindering transaction.

He called on the Finance Minister to resolve this crisis as soon as possible, promising to follow up on the issue, saying the people already have to contend with the health, economic and psychological crises and can do without another one.

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Climate Change Imperils Drought-Stricken Morocco’s Cereal Farmers and Its Food Supply

A farmer works in a wheat field on the outskirts of Kenitra, Morocco, Friday, June 21, 2024. (AP)
A farmer works in a wheat field on the outskirts of Kenitra, Morocco, Friday, June 21, 2024. (AP)
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Climate Change Imperils Drought-Stricken Morocco’s Cereal Farmers and Its Food Supply

A farmer works in a wheat field on the outskirts of Kenitra, Morocco, Friday, June 21, 2024. (AP)
A farmer works in a wheat field on the outskirts of Kenitra, Morocco, Friday, June 21, 2024. (AP)

Golden fields of wheat no longer produce the bounty they once did in Morocco. A six-year drought has imperiled the country's entire agriculture sector, including farmers who grow cereals and grains used to feed humans and livestock.

The North African nation projects this year's harvest will be smaller than last year in both volume and acreage, putting farmers out of work and requiring more imports and government subsidies to prevent the price of staples like flour from rising for everyday consumers.

"In the past, we used to have a bounty — a lot of wheat. But during the last seven or eight years, the harvest has been very low because of the drought," said Al Housni Belhoussni, a small-scale farmer who has long tilled fields outside of the city of Kenitra.

Belhoussni's plight is familiar to grain farmers throughout the world confronting a hotter and drier future. Climate change is imperiling the food supply and shrinking the annual yields of cereals that dominate diets around the world — wheat, rice, maize and barley.

In North Africa, among the regions thought of as most vulnerable to climate change, delays to annual rains and inconsistent weather patterns have pushed the growing season later in the year and made planning difficult for farmers.

In Morocco, where cereals account for most of the farmed land and agriculture employs the majority of workers in rural regions, the drought is wreaking havoc and touching off major changes that will transform the makeup of the economy. It has forced some to leave their fields fallow. It has also made the areas they do elect to cultivate less productive, producing far fewer sacks of wheat to sell than they once did.

In response, the government has announced restrictions on water use in urban areas — including on public baths and car washes — and in rural ones, where water going to farms has been rationed.

"The late rains during the autumn season affected the agriculture campaign. This year, only the spring rains, especially during the month of March, managed to rescue the crops," said Abdelkrim Naaman, the chairman of Nalsya. The organization has advised farmers on seeding, irrigation and drought mitigation as less rain falls and less water flows through Morocco's rivers.

The Agriculture Ministry estimates that this year's wheat harvest will yield roughly 3.4 million tons (3.1 billion kilograms), far less than last year's 6.1 million tons (5.5 billion kilograms) — a yield that was still considered low. The amount of land seeded has dramatically shrunk as well, from 14,170 square miles (36,700 square kilometers) to 9,540 square miles (24,700 square kilometers).

Such a drop constitutes a crisis, said Driss Aissaoui, an analyst and former member of the Moroccan Ministry for Agriculture.

"When we say crisis, this means that you have to import more," he said. "We are in a country where drought has become a structural issue."

Leaning more on imports means the government will have to continue subsidizing prices to ensure households and livestock farmers can afford dietary staples for their families and flocks, said Rachid Benali, the chairman of the farming lobby COMADER.

The country imported nearly 2.5 million tons of common wheat between January and June. However, such a solution may have an expiration date, particularly because Morocco's primary source of wheat, France, is facing shrinking harvests as well.

The United Nations' Food and Agriculture Organization ranked Morocco as the world's sixth-largest wheat importer this year, between Türkiye and Bangladesh, which both have much bigger populations.

"Morocco has known droughts like this and in some cases known droughts that las longer than 10 years. But the problem, this time especially, is climate change," Benali said.