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."



Israeli Troops Battle Palestinian Fighters in Gaza City of Khan Younis

 Smoke rises following Israeli strikes during an Israeli military operation, amid Israel-Hamas conflict, in Khan Younis, in the southern Gaza Strip, July 24, 2024. (Reuters)
Smoke rises following Israeli strikes during an Israeli military operation, amid Israel-Hamas conflict, in Khan Younis, in the southern Gaza Strip, July 24, 2024. (Reuters)
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Israeli Troops Battle Palestinian Fighters in Gaza City of Khan Younis

 Smoke rises following Israeli strikes during an Israeli military operation, amid Israel-Hamas conflict, in Khan Younis, in the southern Gaza Strip, July 24, 2024. (Reuters)
Smoke rises following Israeli strikes during an Israeli military operation, amid Israel-Hamas conflict, in Khan Younis, in the southern Gaza Strip, July 24, 2024. (Reuters)

Israeli troops battled Palestinian fighters in Khan Younis in southern Gaza and destroyed tunnels and other infrastructure, as they sought to suppress small militant units that have continued to hit troops with mortar fire, the military said on Friday.

The Israeli Defense Forces (IDF) said troops had killed around 100 Palestinian fighters since Israeli troops began their latest operation in Khan Younis on Monday, which continued as pressure mounted for a deal to halt the fighting.

It said seven small units that had been firing mortars at the troops were hit in an air strike, while further south, in Rafah, four fighters were also killed in air strikes.

The Islamic Jihad armed wing said it fired rockets toward the southern Israeli city of Ashkelon and other Israeli towns near Gaza. No casualties were reported, the Israeli ambulance service said.

The continued fighting, more than nine months since the start of Israel's invasion of Gaza following the Oct. 7 attack, underlined the difficulty the IDF has had in eliminating fighters who have reverted to a form of guerrilla warfare in the ruins of the coastal strip.

A Telegram channel operated by the armed wings of Hamas and Islamic Jihad, the two main militant groups in Gaza, said fighters had been waging fierce battles with Israeli troops east of Khan Younis with machine guns, mortars and anti-tank weapons.

Medics said at least six Palestinians were killed in Israeli strikes in eastern Khan Younis.

US PRESSURE

US President Joe Biden, and Vice President Kamala Harris, the presumptive Democratic Party nominee for president, both urged Prime Minister Benjamin Netanyahu to agree to a proposed ceasefire deal as soon as possible.

However there has been no clear sign of movement in talks to end the fighting and bring home some 115 Israeli and foreign hostages still being held in Gaza. Public statements from Israel and Hamas appear to indicate that serious differences remain between the two sides.

Local residents contacted by messenger app, said Israeli tanks had pushed into three towns to the east of Khan Younis, Bani Suhaila, Al-Zanna and Al-Karara and blew up several houses in some residential districts.

The military said air force jets hit around 45 targets, including tunnels and two launch pads from which rockets were fired into Beersheba in southern Israel.

Even while the fighting continued around Khan Younis and Rafah in the south, in the northern part of the enclave, Israeli tanks pushed into the Tel Al-Hawa suburb west of Gaza city, residents said.

A Hamas Telegram channel said fighters targeted an Israeli tank in Tal Al-Hawa and shot an Israeli soldier.

Medics said two Palestinians were also killed in an air strike in western Gaza city.

More than 39,000 Palestinians have been killed in the fighting in Gaza, according to local health authorities, who do not distinguish between fighters and non-combatants.

Israeli officials estimate that some 14,000 fighters from armed groups including Hamas and Islamic Jihad, have been killed or taken prisoner, out of a force they estimated to number more than 25,000 at the start of the war.