Lebanese Dread End to Subsidies

Maya Ibrahimshah, the founder of Lebanese NGO Beit al-Braka (house of blessings) organizes food to be distributed to the needy. AFP
Maya Ibrahimshah, the founder of Lebanese NGO Beit al-Braka (house of blessings) organizes food to be distributed to the needy. AFP
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Lebanese Dread End to Subsidies

Maya Ibrahimshah, the founder of Lebanese NGO Beit al-Braka (house of blessings) organizes food to be distributed to the needy. AFP
Maya Ibrahimshah, the founder of Lebanese NGO Beit al-Braka (house of blessings) organizes food to be distributed to the needy. AFP

To feed her family, Lebanese mother Sandra al-Tawil sold her fridge and washing machine. Now she fears the cash-strapped state will scrap food subsidies, plunging them deeper into poverty.

Lebanon is locked in its worst economic crisis since the 1975-1990 civil war, with no end in sight.

The value of the Lebanese pound has plunged, driving up the price of crucial imports like food and fuel and triggering small but angry protests.

More than half of Lebanon's population is poverty stricken and relies on subsidies, but a central bank demand for "an immediate plan to ration subsidies" is looming.

"We're already tightening our belts. What will we eat if we can no longer buy rice or lentils?" 40-year-old Tawil said.

Tawil and her husband lived a comfortable life in Dubai before returning to their homeland to open a high-end hair salon in 2019.

But that dream turned to nightmare after the financial crisis and the Covid-19 pandemic hit.

"I had to sell my washing machine and fridge... just to get the minimum of daily bread and pay rent," said the mother of two young children.

Her husband found a job at the start of the year, and the Beit El Baraka charity is helping them out with food and school fees.

But Tawil is still worried, and furious with the political class she blames for the malaise.

"If I see people heading out to protest, I'll be the first to join them," AFP quoted her as saying.

In a country that imports 80 percent of its food, much of the six million population depends on subsidies to get by.

Even without them being lifted, many are already struggling, said Beit El Baraka founder Maya Ibrahimchah.

"There have been many more demands for help over the past four months," she said.

"Those we are helping today are all from the middle class."

The state has poured up to $437 million into subsidies a month, the World Bank estimates, to keep prices in check for bread, medicine, fuel and electricity, as well as around 300 other items since mid-2020.

To counter the pound's drastic devaluation, importers get access to dollars at a preferential rate to ensure they can afford to continue bringing in supplies.

For flour, fuel and medicine, for example, they offer dollars at the official exchange rate of 1,507 pounds to cover most of their cost.

But traders must resort to the black market to cover the difference, where Tuesday the rate hit a record low of 10,000 pounds to the dollar.

As a result, in less than a year the price of a large bag of subsidized bread has risen from 1,500 to 2,500 pounds.

Authorities have remained vague about how the subsidies will be reduced, though meetings are ongoing.

In early December, central bank governor Riad Salameh said it could only fund subsidies for another two months. Later that month, he said two billion dollars were available for them.

At the end of February, the central bank's website showed it had $17.9 billion in foreign currency reserves, yet $17.5 billion of that is the bank's required reserves.

The bank did not respond to AFP's repeated requests for comment.

The UN food agency has warned any subsidy reduction would have "major inflationary repercussions" and "put an unbearable strain on households".

The price of bread could increase by up to three times and fuel by 4.5 times, the World Food Program said, adding it was critical to immediately scale up assistance to the poorest.

Under the government's latest plan, subsidies could be gradually lifted, with financial aid to soften the blow over several years.

The state would first lift subsidies for bread, fuel and around 300 other items, under the plan seen by AFP, before later on reviewing spending in the electricity sector.

To compensate, up to 80 percent of the population would receive handouts -- 50 dollars a month for adults aged over 23 and half for anybody younger.

Those amounts, and the numbers of beneficiaries, would then progressively diminish.

Until then, the authorities have secured $246 million from the World Bank to help 786,000 Lebanese.

But Nasser Jomaa, 52, said he doubted the government would really provide any financial support.

"It's just empty words. We have zero faith in the state," said the driver, who lives with his unemployed 25-year-old son.

As the Lebanese pound has plunged on the black market, he has seen his monthly income drop in value from $1,000 to just $160.

He added that any lifting of subsidies would be "catastrophic".

Already, he said, "we no longer eat meat."



Sudan’s Burhan Vows to Forge ahead in Defeating RSF

Head of Sudan’s Sovereignty Council and army commander Abdel Fattah al-Burhan (R) during a visit to Musawwarat. (Facebook)
Head of Sudan’s Sovereignty Council and army commander Abdel Fattah al-Burhan (R) during a visit to Musawwarat. (Facebook)
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Sudan’s Burhan Vows to Forge ahead in Defeating RSF

Head of Sudan’s Sovereignty Council and army commander Abdel Fattah al-Burhan (R) during a visit to Musawwarat. (Facebook)
Head of Sudan’s Sovereignty Council and army commander Abdel Fattah al-Burhan (R) during a visit to Musawwarat. (Facebook)

Head of Sudan’s Sovereignty Council and army commander Abdel Fattah al-Burhan declared on Thursday that there can be no reconciliation with the Rapid Support Forces (RSF).

“We are forging ahead with the battle for dignity to defeat this rebellion. We will not betray the sacrifices of our sons and brothers, who gave their lives in defending their country,” he said during a visit to the Naqa and Musawwarat region in the Nile River state on the occasion of the 71st Army Day.

He hailed the Sudanese people who have stood by the armed forces, especially in the regions of El-Fasher, Babanusa and Kadugli, as well as all the forces that are defending and protecting the people.

On the same occasion, Prime Minister Kamil Idris said the armed forces have made several sacrifices in defending Sudan’s sovereignty.

“The country is waging a fateful war” against the RSF in order to preserve its unity and independence, he stressed.

The country is facing a fierce attack that is threatening the state, which demands internal unity and solidarity with the armed forces, he went on to say.

Meanwhile, reactions continued to pour in over the United Nations Security Council’s strong rejection of the establishment of a parallel government in areas held by the RSF, led by Mohamed Hamdan Dagalo.

The Foreign Ministry welcomed the statement, saying the Sudanese government remains committed to preserving the sovereignty, safety, security, stability and unity of the country.

It said it was ready to work with the international community in line with rules and norms that serve the interests of the people.

The Security Council on Wednesday rejected plans by the RSF to establish a rival government in areas it controls, warning that the move threatens the country’s territorial integrity and risks further exacerbating the ongoing civil war.

The strongly worded statement “unequivocally reaffirmed” its unwavering commitment to Sudan’s sovereignty, independence and unity.

Any steps to undermine these principles “threaten not only the future of Sudan but also the peace and stability of the broader region,” the statement said.

The 15-member council said the announcement by the RSF also risks “fragmenting the country and worsening an already dire humanitarian situation.”

Sudan plunged into conflict in mid-April 2023, when long-simmering tensions between its military and paramilitary leaders broke out in the capital, Khartoum, and spread to other regions, including western Darfur. Some 40,000 people have been killed, nearly 13 million displaced and many pushed to the brink of famine, UN agencies say.

The RSF and their allies announced in late June that they had formed a parallel government in areas the group controls, mainly in the vast Darfur region where allegations of war crimes and crimes against humanity are being investigated.