IMF Chief Says More Unity Needed in Lebanon on Reforms

An anti-government protester waves a national flag in front of a concrete wall set up by Lebanese police to block a road leading to the parliament building in downtown Beirut, Lebanon. (EPA)
An anti-government protester waves a national flag in front of a concrete wall set up by Lebanese police to block a road leading to the parliament building in downtown Beirut, Lebanon. (EPA)
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IMF Chief Says More Unity Needed in Lebanon on Reforms

An anti-government protester waves a national flag in front of a concrete wall set up by Lebanese police to block a road leading to the parliament building in downtown Beirut, Lebanon. (EPA)
An anti-government protester waves a national flag in front of a concrete wall set up by Lebanese police to block a road leading to the parliament building in downtown Beirut, Lebanon. (EPA)

International Monetary Fund Managing Director Kristalina Georgieva said on Friday she does not yet have reason to see a breakthrough in negotiations with Lebanon to help resolve the country’s economic crisis.

Georgieva told a Reuters Newsmaker webcast event that IMF officials continue to work with Lebanon, but it is unclear whether the country’s leaders, stakeholders and society can unify around reforms needed to stabilize its economy and return it to a growth path.

Lebanon is battling a financial crisis regarded as the biggest threat to the country since its 1975-1990 civil war, with the Lebanese pound losing 75% of its value since October.

Hopes for a quick rescue deal with the IMF have been complicated by a dispute between the government and central bank over the scale of losses in the banking system. Concerns persist, meanwhile, over Prime Minister Hassan Diab’s commitment to reforms.

“The core of the issue is whether there can be a unity of purpose in the country that can then carry forward a set of very tough but necessary measures,” Georgieva said. “All I can say is that we are putting our best people to work with Lebanon, but we do not yet have a reason to say there is a breakthrough.”

Georgieva said Lebanon’s situation “breaks my heart” because the country has a strong entrepreneurial culture and has taken in Palestinian and Syrian refugees, helping to ease a major humanitarian crisis.



Houthis in Yemen Strip their Head of Govt of his Powers

The Houthis prevented Ahmed al-Rahwi from naming the head of his office. (Houthi media)
The Houthis prevented Ahmed al-Rahwi from naming the head of his office. (Houthi media)
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Houthis in Yemen Strip their Head of Govt of his Powers

The Houthis prevented Ahmed al-Rahwi from naming the head of his office. (Houthi media)
The Houthis prevented Ahmed al-Rahwi from naming the head of his office. (Houthi media)

The Iran-backed Houthi militias have prevented their so-called prime minister, Ahmed al-Rahwi, from naming the head of his office.

The Houthis have instead forced him to appoint a person of their choosing against his wishes, revealed informed sources in the Houthi-held capital Sanaa.

The Houthis are attempting to strip al-Rahwi, who was named as head of the militias’ new government, of his powers, making his appointment simply a cover for imposing their agenda and favoring Houthis who are descended of the line of their leader Abdulmalik al-Houthi.

The sources revealed that al-Rahwi had headed to the government headquarters with Rabih al-Mehdi, the director of the office of his predecessor. Mehdi hails from the Abyan province that is held by the legitimate government.

Al-Rahwi was seeking to keep al-Mehdi in his post. However, a leading Houthi member, Mohammed Qassem al-Kabisi, who used to occupy the position of government secretary, barred him from making the appointment.

Kabisi even prevented al-Mehdi from entering his office, resulting in an argument with al-Rahwi.

Kabisi informed al-Rahwi that he had no authority in naming the head of his office, saying that he does instead.

Al-Rahwi turned to the Houthis’ so-called ruling high political council to resolve the dispute and was informed that he should accept Kabisi as head of his office despite his objection.

A decree was issued days later naming Kabisi to the post.

He will effectively hold absolute power in government, while al-Rahwi will simply play a figurative role and only be needed to approve decisions and procedures taken by the Houthi leadership, joining other ministers who have no real duties.

The Houthis have formed a new government that will follow in the footsteps of its predecessor in keeping actual power to the militias themselves.

The new lineup includes a pro-Houthi figure, with no diplomatic background or experience, who was named foreign minister, replacing leading General People's Congress member Hisham Sharaf.

The appointment only fueled claims that the Houthis were seeking to eliminate their partners from rule. Al-Rahwi himself had no say in the lineup.

The Houthis announced the formation of their government on August 12. It met on August 17 to discuss its program, referred it to parliament the same day and by the next morning, an announcement was made that it was approved with no amendments or objections.

The incident with al-Rahwi has fueled speculation that the coming period will witness more struggles for power among the Houthis and their partners, whom they are trying to keep out of rule.

Observers noted that Kabisi is the son of a top Houthi leader. Qassem al-Kabisi is one of the founders of the group and is close to their leader Abdulmalik al-Houthi.

The senior Houthi officials believe they have the right to represent the Houthis in rule since they are its founders and oldest members.