Lebanon Parliament Postpones Budget Talks, Slowing IMF Reform Checklist

Lebanon's parliament members hold a session to discuss and approve budget in Beirut, Lebanon September 16, 2022. (Lebanese Parliament/Handout via Reuters)
Lebanon's parliament members hold a session to discuss and approve budget in Beirut, Lebanon September 16, 2022. (Lebanese Parliament/Handout via Reuters)
TT
20

Lebanon Parliament Postpones Budget Talks, Slowing IMF Reform Checklist

Lebanon's parliament members hold a session to discuss and approve budget in Beirut, Lebanon September 16, 2022. (Lebanese Parliament/Handout via Reuters)
Lebanon's parliament members hold a session to discuss and approve budget in Beirut, Lebanon September 16, 2022. (Lebanese Parliament/Handout via Reuters)

Lebanon's parliament on Friday suspended talks on the 2022 budget after a walk-out by lawmakers sent attendance below quorum, further delaying efforts to complete requirements to access IMF funds to relieve its economic crisis.

A group of parliamentarians, including newly-elected lawmakers who ran on a reform platform, walked out over the "chaotic" discussions.

"It's unconstitutional and chaotic. (Other lawmakers) were saying let's change this, change that, add here, add there, without studying anything. This is how we're going to do this?" Halima Kaakour, a first-time lawmaker, told Reuters.

Speaker Nabih Berri scheduled the next session for Sept. 26, following the return of Prime Minister Najib Mikati from trips to London for Queen Elizabeth's funeral and New York for the United Nations General Assembly.

Lebanon has been trapped in an economic meltdown since 2019 that has impoverished more than 80% of the population and drained state coffers.

An April staff-level agreement between Lebanon's government and the International Monetary Fund called on authorities to increase revenues to fund the crippled public sector and more social spending by calculating customs taxes at a "unified exchange rate".

Lebanese authorities still calculate customs tariffs – a key source of state revenues – at the old peg of 1,505 Lebanese lira per dollar.

MPs had debated re-calculating it to between 12,000 to 14,000 Lebanese lira to the dollar even as the market rate was at 38,000 on Friday.

Lebanon's economy minister told Reuters he was "very concerned" the budget would not satisfy the IMF, which did not respond to Reuters requests for comment on Friday.

Lebanon has barely advanced on the IMF's 10 pre-requisites due to resistance from political factions, commercial banks and powerful private lobby groups.

"There's been slow progress in implementing some of the critical actions that we think are required to move forward with a program," IMF spokesman Gerry Rice told a news briefing on Thursday, saying a staff mission would visit Lebanon next week to discuss ways to "speed up" required reforms.



Sudan's Foreign Ministry Condemns Nairobi Meetings as Army Vows Retaliation

Assistant Commander-in-Chief of the Sudanese Army General Yasir Al-Atta (Sudan News Agency)
Assistant Commander-in-Chief of the Sudanese Army General Yasir Al-Atta (Sudan News Agency)
TT
20

Sudan's Foreign Ministry Condemns Nairobi Meetings as Army Vows Retaliation

Assistant Commander-in-Chief of the Sudanese Army General Yasir Al-Atta (Sudan News Agency)
Assistant Commander-in-Chief of the Sudanese Army General Yasir Al-Atta (Sudan News Agency)

The Sudanese Foreign Ministry has downplayed meetings held in Nairobi, Kenya, to sign a political charter that would pave the way for the establishment of a government in areas controlled by the Rapid Support Forces (RSF) in Sudan.

This proposed government would act as a parallel authority to the military-backed administration based in Port Sudan, the country’s temporary capital.

The Foreign Ministry dismissed the initiative as a “propaganda stunt” and warned of potential measures to restore order.

The Sudanese army also vowed to confront supporters of the new government and to purge the country of RSF forces.

Speaking at a rally in the northern city of Al-Dabba, Assistant Commander-in-Chief of the Sudanese Army, General Yasir Al-Atta, stated that the military is preparing to “cleanse” the country of RSF forces and retake all areas under their control.

His remarks marked the first direct military response to the Nairobi meetings, which are backed by the RSF and seek to establish a so-called “Government of Peace and Unity.”

This coalition consists of political and civil groups, armed movements, and RSF representatives, positioning itself as an alternative to the military-led government in Port Sudan.

In a strongly worded statement, Al-Atta vowed to fight those attempting to establish the parallel government. “To those who claim to be forming a parallel government, we will fight you in every inch of Sudanese territory. We will show you that the Sudanese nation has lions with sharp claws and fangs,” he said.

The Sudanese Foreign Ministry dismissed the Nairobi meetings as a “mere propaganda event” with no real impact. It also hinted at possible actions to restore order.

In a statement issued late Tuesday, the ministry expressed regret over Kenya’s decision to host the signing of what it called a political agreement between the “terrorist RSF militia” and its allies. It accused Kenya of violating international law, United Nations principles, and the founding charter of the African Union.

Originally scheduled for Tuesday, the signing of the political charter was postponed to Friday following the participation of the Sudan People’s Liberation Movement, led by Abdelaziz Adam Al-Hilu. Additional military and civilian factions are expected to join the initiative to establish a government in RSF-controlled areas, running parallel to the administration led by Army Chief Abdel Fattah Al-Burhan in Port Sudan.

The Foreign Ministry warned that the stated goal of the agreement—to form a government on Sudanese territory—amounts to an attempt to divide the country, undermine its sovereignty, and interfere in its internal affairs. It also accused Kenya of “harboring RSF leaders and allowing them to engage in public political and propaganda activities,” arguing that this effectively encourages continued crimes against civilians, including massacres and genocide.

Furthermore, the ministry accused the Kenyan government of violating principles of good neighborliness and contradicting previous commitments made at the highest levels not to allow hostile activities against Sudan from its territory.

The ministry asserted that the Nairobi meetings would have no real impact, emphasizing the Sudanese army’s determination to reclaim all land from what it described as the “terrorist militia and its foreign mercenaries.”

It also called on the international community to condemn Kenya’s actions, warning that Sudan would take the necessary steps to correct the situation.

Kenya Faces Domestic Criticism

Kenya has also faced internal criticism for hosting an event organized by the RSF to announce a parallel government, with some accusing it of irresponsibility and “covering up” criminal activities.

Two sources involved in organizing the event told Agence France Presse that RSF leader Mohamed Hamdan Dagalo (Hemedti), who has remained largely out of sight throughout the war, has arrived in Kenya and is expected to attend the official announcement on Friday.

Kenya has historically hosted several regional peace agreements, including the Comprehensive Peace Agreement for Sudan 20 years ago, which ended a previous civil war. However, a lawyer working with the International Refugee Organization, a human rights group, stated that Kenya’s latest move “undermines” the positive image it seeks to project.