BDL Reserve for Subsidies to Dry Up in Two Months

Lebanon's Central Bank Governor Riad Salameh speaks during an interview with Reuters at his office in Central Bank in Beirut, Lebanon October 24, 2017.REUTERS/Jamal Saidi
Lebanon's Central Bank Governor Riad Salameh speaks during an interview with Reuters at his office in Central Bank in Beirut, Lebanon October 24, 2017.REUTERS/Jamal Saidi
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BDL Reserve for Subsidies to Dry Up in Two Months

Lebanon's Central Bank Governor Riad Salameh speaks during an interview with Reuters at his office in Central Bank in Beirut, Lebanon October 24, 2017.REUTERS/Jamal Saidi
Lebanon's Central Bank Governor Riad Salameh speaks during an interview with Reuters at his office in Central Bank in Beirut, Lebanon October 24, 2017.REUTERS/Jamal Saidi

In Lebanon, the government’s preoccupation with limiting a staggering hike in coronavirus cases overshadowed its efforts to tackle the equally dangerous file of financing subsidies for basic goods.

With dollar reserves at Banque Du Liban (BDL) dwindling, the Levantine country is inching closer to having to adopt new mechanisms for redistributing available support.

A meltdown without precedent has crashed Lebanon’s currency, paralyzed banks, and sent inflation soaring.

As dollar inflows dried up, the central bank has used its reserves to provide foreign currency for key imports - fuel, wheat, and medicine - and some basic goods.

Political forces, for their part, are demanding the rationalization of subsidies, with some proposing the scrapping of support for some goods to buy more time on other necessities deemed more vital.

Subsidies offered by the state and BDL totaled around $5 billion in 2020. How much of the foreign currency reserves is left for the country to use in the face of its spiraling financial crisis remains a mystery.

Government estimates suggest that Lebanon has less than a billion dollars to go, but the central bank governor, Riad Salameh, has recently said that almost $2 billion are left.

Regardless of projected figures, Lebanon spends an average of $500-$600 million monthly on subsidized goods. This means that remaining reserves, according to the currently approved mechanism, can last between two to four months tops.

Lebanon’s subsidy system provides that importers pay 15% of their total invoices in US dollars and 85% in Lebanese lira, which BDL converts to dollars at the official exchange rate in order to pay foreign suppliers.

According to the latest financial data obtained by Asharq Al-Awsat, the total hard currency reserves at BDL fell to about $24 billion at the end of 2020. It is worth noting that the figure includes $ 5 billion in international debt securities.



Israeli Troops Burn Northern Gaza Hospital after Forcibly Removing Staff and Patients, Officials Say

A fire burns as seen through a window from Kamal Adwan hospital, during the ongoing Israeli military operation, amid Israel-Hamas conflict, in Beit Lahiya, in the northern Gaza Strip, December 18, 2024. (Reuters)
A fire burns as seen through a window from Kamal Adwan hospital, during the ongoing Israeli military operation, amid Israel-Hamas conflict, in Beit Lahiya, in the northern Gaza Strip, December 18, 2024. (Reuters)
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Israeli Troops Burn Northern Gaza Hospital after Forcibly Removing Staff and Patients, Officials Say

A fire burns as seen through a window from Kamal Adwan hospital, during the ongoing Israeli military operation, amid Israel-Hamas conflict, in Beit Lahiya, in the northern Gaza Strip, December 18, 2024. (Reuters)
A fire burns as seen through a window from Kamal Adwan hospital, during the ongoing Israeli military operation, amid Israel-Hamas conflict, in Beit Lahiya, in the northern Gaza Strip, December 18, 2024. (Reuters)

Israeli troops stormed one of the last hospitals operating in northern Gaza on Friday, igniting fires and forcing many staff and patients outside to strip in winter weather, the territory’s health ministry said.

Kamal Adwan Hospital has been hit multiple times over the past three months by Israeli troops waging an offensive against Hamas fighters in surrounding neighborhoods, according to staff. The ministry said a strike on the hospital a day earlier killed five medical staff.

Israel's military said it was conducting operations against Hamas infrastructure and fighters in the area of the hospital, without details. It repeated claims that fighters operate inside Kamal Adwan but provided no evidence. Hospital officials have denied that.

The Health Ministry said troops forced medical personnel and patients to assemble in the yard and remove their clothes. Some were led to an unknown location, while some patients were sent to the nearby Indonesian Hospital, which was knocked out of operation after an Israel raid this week.

Israeli troops during raids frequently carry out mass detentions, stripping men to their underwear for questioning in what the military says is a security measure as they search for Hamas fighters. The AP doesn’t have access to Kamal Adwan, but armed plainclothes members of the Hamas-led police forces — tasked with keeping security and officially separate from the group’s armed wing — have been seen in other hospitals.

The Health Ministry said Israeli troops also set fires in several parts of Kamal Adwan, including the lab and surgery department. It said 25 patients and 60 health workers remained in the hospital out of 75 patients and 180 staff who had been there. The account could not be independently confirmed, and attempts to reach hospital staff were unsuccessful.

“Fire is ablaze everywhere in the hospital,” an unidentified member of the staff said in an audio message posted on the social media accounts of hospital director Hossam Abu Safiya. The staffer said some evacuated patients had been unhooked from oxygen. “There are currently patients who could die at any moment,” she said.

Since October, Israel’s offensive has virtually sealed off the northern Gaza areas of Jabaliya, Beit Hanoun and Beit Lahiya and leveled large parts of them. Tens of thousands of Palestinians were forced out but thousands are believed to remain in the area, where Kamal Adwan and two other hospitals are located. Troops raided Kamal Adwan in October, and on Tuesday troops stormed and evacuated the Indonesian Hospital.

The area has been cut off from food and other aid for months, raising fears of famine. The UN says Israeli troops allowed just four humanitarian deliveries to the area from Dec. 1 to Dec. 23.

The Israeli rights group Physicians for Human Rights-Israel this week petitioned Israel’s High Court of Justice seeking a halt to military attacks on Kamal Adwan. It warned that forcibly evacuating the hospital would “abandon thousands of residents in northern Gaza.” Before the latest deaths Thursday, the group documented five other staffers killed by Israeli fire since October.

Israel launched its campaign in Gaza vowing to destroy Hamas after the group’s Oct. 7, 2023, attack on southern Israel in which fighters killed around 1,200 people and abducted some 250 others. Around 100 Israelis remain captive in Gaza, around a third believed to be dead.

Israel’s nearly 15-month-old campaign of bombardment and offensives has devastated the territory’s health sector. A year ago, it carried out raids on hospitals in northern Gaza, including Kamal Adwan, Indonesian and al-Awda Hospital, saying they served as bases for Hamas, though it presented little evidence.

Israel’s campaign has killed more than 45,400 Palestinians, more than half of them women and children, and wounded more than 108,000 others, according to the Health Ministry. Its count does not distinguish between civilians and combatants.

More than 90% of Gaza’s 2.3 million Palestinians have been driven from their homes, most of them now sheltering in sprawling, squalid tent camps in south and central Gaza.

Children and adults, many barefoot, huddled Friday on the cold sand in tents whose plastic and cloth sheets whipped in the wind. Overnight temperatures can dip into the 40s Fahrenheit (below 10 Celsius), and sea spray from the Mediterranean can dampen the tents just steps away.