UN Chief Says ‘Ponzi Scheme’ Crashed Lebanon’s Finances

United Nations Secretary-General Antonio Guterres gestures as he attends a news conference at the end of his visit to Lebanon, in Beirut, Lebanon December 21, 2021. (Reuters)
United Nations Secretary-General Antonio Guterres gestures as he attends a news conference at the end of his visit to Lebanon, in Beirut, Lebanon December 21, 2021. (Reuters)
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UN Chief Says ‘Ponzi Scheme’ Crashed Lebanon’s Finances

United Nations Secretary-General Antonio Guterres gestures as he attends a news conference at the end of his visit to Lebanon, in Beirut, Lebanon December 21, 2021. (Reuters)
United Nations Secretary-General Antonio Guterres gestures as he attends a news conference at the end of his visit to Lebanon, in Beirut, Lebanon December 21, 2021. (Reuters)

UN Secretary-General Antonio Guterres said Lebanon's financial collapse was caused by "something similar to a Ponzi scheme", according to a video of comments he made while visiting Beirut this week.

Lebanon is in the third year of an economic meltdown that began in 2019 when the financial system collapsed under the weight of huge state debt - the result of decades of corruption and mismanagement and the unsustainable way it was financed.

Critics of the Lebanese authorities have compared the financial system to a Ponzi scheme, depending on fresh borrowing to pay back existing debt.

The central bank has denied this.

"As far as I understand what has happened in Lebanon is that Lebanon was using something similar to a Ponzi scheme..., which means that together with of course corruption and other, probably, forms of stealing, the financial system has collapsed," Guterres said in the video circulated on social media.

The crash has caused the Lebanese pound to lose more than 90% of its value and savers to be frozen out of their deposits in the paralyzed banking system.

Mike Azar, an expert on the Lebanese financial system, said Guterres had expressed similar views at another closed-door gathering between the UN chief and members of Lebanese civil society on Tuesday.

Asked by Reuters about the remarks, a UN spokesperson said the secretary-general's views on the financial crisis were "more fully expressed" at a news conference at the end of his visit.

At that news conference, Guterres said Lebanese leaders need to convince the international community to support Lebanon by implementing reforms "in relation to the economic, the social and the political life of the country," and by adopting a "credible economic recovery plan" for talks for an IMF support program.



Planes from Jordan and UAE Airdrop Humanitarian Aid into Gaza

28 July 2025, Palestinian Territories, Deir al-Balah: Humanitarian aid supplies are airdropped by military cargo planes over the western part of Deir al-Balah. (dpa)
28 July 2025, Palestinian Territories, Deir al-Balah: Humanitarian aid supplies are airdropped by military cargo planes over the western part of Deir al-Balah. (dpa)
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Planes from Jordan and UAE Airdrop Humanitarian Aid into Gaza

28 July 2025, Palestinian Territories, Deir al-Balah: Humanitarian aid supplies are airdropped by military cargo planes over the western part of Deir al-Balah. (dpa)
28 July 2025, Palestinian Territories, Deir al-Balah: Humanitarian aid supplies are airdropped by military cargo planes over the western part of Deir al-Balah. (dpa)

Two planes from the Jordanian and UAE Air Force airdropped 17 tons of humanitarian aid in Gaza on Monday, Jordan's military said.

The aid packages come as hunger continues to soar across the enclave.

The airdrops took place for the second day as Israel faces increasing pressure over Gaza’s humanitarian crisis. However, Philippe Lazzarini, the head of the United Nations agency for Palestinian refugees, warned that airdrops are “expensive, inefficient and can even kill starving civilians.”

The 17 tons of airdropped aid amounts to less than one aid truck carrying food, based on the World Food Program’s calculation of nearly 19 tons per truck.

German Chancellor Friedrich Merz said Monday that Germany intends to conduct an airlift of humanitarian aid to Gaza along with Jordan. 

Merz didn’t provide details of the plan after a meeting of his security Cabinet, but said his defense minister will consult with France and Britain, “which are also prepared to make available such an airlift for food and medical goods.” Jordan’s King Abdullah II is due to meet Merz in Berlin on Tuesday. 

Merz said Israel’s move to lift some aid restrictions is “an important first step” but “further ones must follow quickly.” He also stressed the need for a comprehensive ceasefire. 

Spanish Prime Minister Pedro Sanchez said that Spain will airdrop 12 tons of food aid into Gaza from Jordan later this week, via Spanish air force planes. 

Sanchez acknowledged this isn’t a solution to hunger, but hopes it offers “minimal relief” alongside aid from other nations. 

Spain’s government has been a vocal critic of Israel’s war in Gaza and has repeatedly called for a ceasefire. 

On Sunday, 180 trucks carrying aid entered Gaza, according to the Israeli military body in charge of overseeing humanitarian aid.

As the death toll from two years of war in Gaza nears 60,000, a growing number of people are dying from starvation and malnutrition, Gaza health authorities say, with images of starving children shocking the world and fueling international criticism of Israel over sharply worsening conditions.

On Monday, the Gaza health ministry said at least 14 people had died in the past 24 hours of starvation and malnutrition, bringing the war's death toll from hunger to 147, including 88 children, most in just the last few weeks.