Lebanon on Edge as Time, Money Run Out

FILE PHOTO: A man counts Lebanese pounds at a currency exchange shop in Beirut, Lebanon October 1, 2020. REUTERS/Mohamed Azakir
FILE PHOTO: A man counts Lebanese pounds at a currency exchange shop in Beirut, Lebanon October 1, 2020. REUTERS/Mohamed Azakir
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Lebanon on Edge as Time, Money Run Out

FILE PHOTO: A man counts Lebanese pounds at a currency exchange shop in Beirut, Lebanon October 1, 2020. REUTERS/Mohamed Azakir
FILE PHOTO: A man counts Lebanese pounds at a currency exchange shop in Beirut, Lebanon October 1, 2020. REUTERS/Mohamed Azakir

Fouad Khamasi fills his taxi every day with about 40,000 Lebanese pounds' worth of fuel. It could cost at least four times that much if subsidies come to an end.

The Beirut cab driver, 53, can just about afford to buy fuel and feed his kids. He worries the price of subsidized foods and key imports - wheat, fuel, medicine - will skyrocket.

"These are the toughest days I've ever seen," Reuters quoted him as saying. "Some days, you stick your hand in your pocket and find nothing ... I leave the house and just pray. Whatever I make, it does nothing. It's a joke."

Time and money are running out for Lebanon.

Foreign reserves have dropped far below what the state already deemed "dangerous levels" when it defaulted on its huge debt in March, meaning it cannot afford to keep subsidies for long.

Leaders in power for decades have yet to enact a financial rescue plan, a year after huge protests against them swept the country, and they have failed to secure aid from foreign donors.

Talks with the International Monetary Fund (IMF) stalled earlier this year when Lebanese government officials, bankers and political parties could not agree over how big the losses were in the financial system and who should bear them.

After a massive explosion at Beirut's port in August that killed nearly 200 people and caused billions of dollars worth of damage, France stepped in.

But rival sectarian politicians could not get past the first hurdle on the French roadmap towards financial aid: naming a new cabinet quickly.

The currency, which has lost more than 80% of its value against the US dollar since last autumn, weakened after the French effort faltered.

Meanwhile, comments from officials indicating an end to some subsidies within months have triggered panic buying, raising the specter of food shortages and a more dramatic crash in the currency.

In the nation of some six million people, more than 55% of whom are below the poverty line, many are bracing for hunger and cold as winter looms.

"Everything that happened since last October could have been avoidable," Nasser Saidi, a former vice central bank governor, told Reuters.

He said targeted aid to the poorest Lebanese would be more effective than subsidies across the board, which had benefited smugglers taking goods into Syria.

"It's all kicking the can down the road. What should have been done is a full economic and financial plan," Saidi said.

Importers of key commodities said they had not been given a timeline to plan for how long subsidies could last.

Central Bank Governor Riad Salameh has said the bank could not finance trade indefinitely, although he gave no timeframe.

President Michel Aoun said recently of reserves: "The money will run out. What can we say?"

An official source close to the government told Reuters the money left for subsidies would last six more months by cutting support for some goods.

The state, which critics say is mired in corruption, and the paralyzed banking sector, its biggest creditor, have traded blame for the crisis.

Meanwhile, the wealth gap, already one of the region's largest, widens. In a country that relies heavily on imports and produces little, prices for many items including diapers have tripled.

In Beirut, men and women, some with young children, can often be seen digging for food in dumpsters near city intersections.

Two months after the port blast, Lebanese expect life to get even harder.

Many families now rely on charity. The meltdown could render people more dependent on political factions for aid and security, in a throwback to the militia days of the civil war.

Some analysts have warned that security forces, their wages fast losing value, would not be able to contain rising unrest. Hospitals fighting a surge in COVID-19 cases are overstretched. Fuel shortages have left city streets dark. Cars line up at petrol stations for rationed fuel.

"We're scared we won't be able to go on," said Siham Itani, a pharmacist who fears price hikes and being robbed. She said supplies of insulin and blood pressure medication had dwindled.

Another pharmacist said a masked man had held her up at gunpoint, asking for baby food.

Mostafa al-Mohalhal, who at 62 suffers from diabetes, stored four insulin vials in his fridge, but the daily power cuts spoiled them.

"If the price rises, how will I pay for them?" he said. "People will die in the streets."



Winter Rains Pile Misery on War-torn Gaza's Displaced

With many residents of Gaza displaced by the war, often living in cramped tent camps, the coming winter is a cause for concern - AFP
With many residents of Gaza displaced by the war, often living in cramped tent camps, the coming winter is a cause for concern - AFP
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Winter Rains Pile Misery on War-torn Gaza's Displaced

With many residents of Gaza displaced by the war, often living in cramped tent camps, the coming winter is a cause for concern - AFP
With many residents of Gaza displaced by the war, often living in cramped tent camps, the coming winter is a cause for concern - AFP

At a crowded camp in Gaza for those displaced by the Israeli war on the strip, Ayman Siam laid concrete blocks around his tent to keep his family dry as rain threatened more misery.

"I'm trying to protect my tent from the rainwater because we are expecting heavy rain. Three days ago when it rained, we were drenched," Siam said, seeking to shield his children and grandchildren from more wet weather.

Siam is among thousands sheltering at Gaza City's Yarmuk sports stadium in the north after being uprooted by the Israeli bombardment.

He lives in one of many flimsy tents set up at the stadium, where the pitch has become a muddy field dotted with puddles left by rainfall that washed away belongings and shelters.

People in the stadium dug small trenches around their tents, covered them with plastic sheets, and did whatever they could to stop the water from entering their makeshift homes.

Others used spades to direct the water into drains, as grey skies threatened more rain.

- 'Catastrophic' -

The majority of Gaza's 2.4 million people have been displaced, often multiple times, by the war that began with Hamas's attack on southern Israel on October 7, 2023. Israel's retaliatory campaign has killed 44,235 people in Gaza, according to figures from the territory's health ministry that the United Nations considers reliable.

With many displaced living in tent camps, the coming winter is raising serious concerns.

Mahmud Bassal, spokesman for Gaza's civil defence agency, told AFP that "tens of thousands of displaced people, especially in the central and south of Gaza Strip, are suffering from flooded tents due to the rains", and called on the international community to provide tents and aid.

International aid organizations have sounded the alarm about the deteriorating situation as winter approaches.

"It's going to be catastrophic," warned Louise Wateridge, an emergency officer for the UN agency for Palestinian refugees currently in Gaza.

"People don't have anything that they need," she said from Gaza City. "They haven't had basic, basic, basic things for 13 months, not food, not water, not shelter," she added.

"It's going to be miserable, it's going to be very desperate."

The rainy period in Gaza lasts between late October and April, with January being the wettest month, averaging 30 to 40 millimetres of rain.

Winter temperatures can drop as low as six degrees Celsius (42 Fahrenheit), AFP reported.

Recent rain has flooded hundreds of tents near the coast in Deir el-Balah, in central Gaza, as well as in Khan Yunis and Rafah in the south, according to Gaza's civil defense.

- 'Nothing left' -

Auni al-Sabea, living in a tent in Deir el-Balah, was among those bearing the brunt of the weather without proper accommodation.

"The rain and seawater flooded all the tents. We are helpless. The water took everything from the tent, including the mattresses, blankets and a water jug. We were only able to get a mattress and blankets for the children," said the displaced man.

"Now, we are in the street and we have nothing left," said the 40-year-old from Al-Shati Camp.

At the stadium, Umm Ahmed Saliha showed the water that pooled under her tent during morning prayers. "All of this is from this morning's rain and winter hasn't even started properly."