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World Bank Approves Emergency Loan to Fund Wheat for Lebanon

A worker loads bags of flour into a truck at Modern Mills of Lebanon, in Beirut, Lebanon, April 12, 2022. Hussein Malla/AP
A worker loads bags of flour into a truck at Modern Mills of Lebanon, in Beirut, Lebanon, April 12, 2022. Hussein Malla/AP
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World Bank Approves Emergency Loan to Fund Wheat for Lebanon

A worker loads bags of flour into a truck at Modern Mills of Lebanon, in Beirut, Lebanon, April 12, 2022. Hussein Malla/AP
A worker loads bags of flour into a truck at Modern Mills of Lebanon, in Beirut, Lebanon, April 12, 2022. Hussein Malla/AP

The World Bank (WB) approved a $150 million emergency loan for food security to support wheat imports to Lebanon and provide stability of bread prices during the coming nine months, a Lebanese minister announced on Monday.

Economy and Trade Minister Amin Salam said in a press conference that he had received the official approval of the bank's board of directors for an emergency loan to finance immediate wheat imports to Lebanon to avoid supply disruption and secure bread for households.

“We have been working with the World Bank for nearly a month on an agreement for a $150 million loan to Lebanon to create a kind of stability by providing bread bundles at subsidized prices,” Salam said.

He revealed that the Banque du Liban is not capable of funding subsidies on wheat because its foreign currency reserves dropped to critical levels.

The Minister said that following the Russian-Ukrainian war, Lebanon became more concerned about its imports of wheat, and that the World Bank has swiftly worked with the Ministry in that regard for Lebanon to get the soft loan.

“The World Bank’s head of the board of directors told me that Lebanon is the first country to receive an emergency loan for its food security,” Salam revealed.

The program, known as the Lebanon Wheat Supply Emergency Response Project, still needs approval by the country's cabinet and parliament, said the minister.

Lebanon is heavily reliant on food imports and pays for them in dollars, which have become increasingly difficult to obtain since its economy crashed in 2019.

Since then, the Lebanese pound has lost more than 90% of its value while food prices have gone up more than 11-fold, according to the World Food Program.

The bread shortage has been exacerbated by the war in Ukraine, which supplies most of Lebanon’s wheat, and by Beirut's inability to store wheat reserves since its largest silos were destroyed in the 2020 Beirut port explosion.

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Lebanese Army Awaits Political Decision to Implement UNSCR 1701

Soldiers from the Lebanese Army and the United Nations Interim Force in Lebanon (UNIFIL) patrol near the southern village of Marjayoun (AFP).
Soldiers from the Lebanese Army and the United Nations Interim Force in Lebanon (UNIFIL) patrol near the southern village of Marjayoun (AFP).
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Lebanese Army Awaits Political Decision to Implement UNSCR 1701

Soldiers from the Lebanese Army and the United Nations Interim Force in Lebanon (UNIFIL) patrol near the southern village of Marjayoun (AFP).
Soldiers from the Lebanese Army and the United Nations Interim Force in Lebanon (UNIFIL) patrol near the southern village of Marjayoun (AFP).

Discussions are underway on the role of the Lebanese army in maintaining security in South Lebanon amid rising optimism about a potential ceasefire between Israel and Hezbollah and the implementation of UN Security Council Resolution 1701

As part of these preparations, the Lebanese government has begun strengthening the army by recruiting 1,500 new soldiers out of the 6,000 needed, aligning with the outcomes of the Paris Conference held on October 23, which allocated 200 million euros to support the military institution, from a broader package intended to help the Lebanese people during the Israel-Hezbollah war.

In remarks to Asharq Al-Awsat, a security official highlighted that the army currently has 4,500 personnel stationed south of the Litani River but requires additional manpower.

The unidentified official noted, however, that any effective deployment would require a political decision and government support. “The Lebanese military will implement Resolution 1701 as is, with no intention of clashing with any party. However, if Israel violates Lebanese sovereignty, the army is fully prepared to respond,” he said.

Although Hezbollah opposes withdrawing from south of the Litani and handing over border security duties to the Lebanese military and UNIFIL, claiming the army lacks the capabilities to defend against Israeli aggression, the security source clarified that the military has been authorized to repel any attacks but will avoid initiating conflict. The army’s expanded deployment depends on a political decision, which, once made, will see the military act without hesitation to uphold Lebanese sovereignty.

While military preparedness is essential, Brigadier General Wehbeh Qatisha argues that Lebanon’s security requires more than just troops or advanced weaponry at the border. The presence of the Lebanese military as a representative of the Lebanese state is also a significant deterrent. He pointed out that prior to 1970, Israel refrained from attacking Lebanon, despite a much smaller army. However, he cautioned that even with a substantial deployment today, the persistence of Hezbollah’s military presence would continue to undermine Lebanon’s stability and security.

Since the 1969 Cairo Agreement, which allowed the Palestine Liberation Organization (PLO) to launch operations against Israel from southern Lebanon, the Lebanese army has been restricted in its ability to enforce security along the border. After the PLO’s departure in 1982, Hezbollah took over military operations in the South. Even after the 2006 war and the adoption of Resolution 1701, which called for the Lebanese military and UNIFIL to secure the border, Hezbollah retained its armed presence and continued to conduct exercises simulating conflict with Israel. The latter violated the international resolution thousands of times, until the last war broke out against the background of turning southern Lebanon into a front supporting Gaza.

Qatisha emphasized that the path to stability lies in comprehensive implementation of international resolutions, particularly 1701 and 1559, and restricting arms to the Lebanese army. He argued that achieving balanced deterrence requires not only military force but also a commitment to diplomacy and international support.