Lebanese Parliament Fails to Elect New President

An MP casts his vote during the first session to elect a new president at the parliament building in Beirut, Lebanon September 29, 2022. REUTERS/Mohamed Azakir
An MP casts his vote during the first session to elect a new president at the parliament building in Beirut, Lebanon September 29, 2022. REUTERS/Mohamed Azakir
TT

Lebanese Parliament Fails to Elect New President

An MP casts his vote during the first session to elect a new president at the parliament building in Beirut, Lebanon September 29, 2022. REUTERS/Mohamed Azakir
An MP casts his vote during the first session to elect a new president at the parliament building in Beirut, Lebanon September 29, 2022. REUTERS/Mohamed Azakir

Parliament failed to elect a new head of state on Thursday to replace President Michel Aoun when his term ends on Oct. 31, and Parliament Speaker Nabih Berri said he would call another session when consensus emerged on a candidate.

However, it is unclear whether legislators in a deeply divided parliament will be able to reach a quorum for the session, raising prospects of renewed political paralysis.

The bulk of votes cast by lawmakers at Thursday's session -- 63 -- were blank. Michel Moawad won the backing of 36 of 122 lawmakers who attended.

Unless consensus emerges on a candidate, the presidency looks set to fall vacant when Aoun's term ends.

Lebanon is going through an economic meltdown and the government struggles to implement structural reforms required for a bailout from the International Monetary Fund.

The crisis, which started in late 2019, has plunged three-quarters of the country into poverty and the Lebanese pound has lost 90% of its value against the dollar.

Anticipating a presidential vacuum, politicians have stepped up efforts to agree a new cabinet led by Prime Minister Najib Mikati - who is currently serving in a caretaker capacity - to which presidential powers could pass until a president can be agreed.



World Bank Looking to Free up Emergency Funds for Lebanon, Managing Director Says

 A plume of smoke billows following an Israeli air strike on the village of Khiam in southern Lebanon near the border with Israel on October 7, 2024. (AFP)
A plume of smoke billows following an Israeli air strike on the village of Khiam in southern Lebanon near the border with Israel on October 7, 2024. (AFP)
TT

World Bank Looking to Free up Emergency Funds for Lebanon, Managing Director Says

 A plume of smoke billows following an Israeli air strike on the village of Khiam in southern Lebanon near the border with Israel on October 7, 2024. (AFP)
A plume of smoke billows following an Israeli air strike on the village of Khiam in southern Lebanon near the border with Israel on October 7, 2024. (AFP)

The World Bank is looking to free up emergency funds for Lebanon, potentially including up to $100 million through the use of special clauses in existing loan deals, its managing director of operations told Reuters.

The Washington-based development lender currently has $1.65 billion in loans to the country including a $250 million loan approved this week to help connect dispersed renewable energy projects in the country.

Amid fighting across southern Lebanon, the bank was currently discussing ways in which it could help support the economy, including through the use of so-called Contingent Emergency Response Component (CERCs) clauses.

"We can use our existing portfolio and free up some money for really critical, short-term liquidity needs," Anna Bjerde said.

CERCs are present in around 600 of the bank's existing projects, globally, and allow it to redirect funds that have yet to be disbursed, if requested to by a government, for example after a health or natural disaster, or during conflict.

Lebanon has yet to make such a request, Bjerde said.

After a year of exchanges of fire between Hezbollah and Israel mostly limited to the frontier region, the conflict has significantly escalated in Lebanon.

Hezbollah fired rockets at Israel's third largest city Haifa on Monday, while Israeli forces looked poised to expand ground raids into south Lebanon on the first anniversary of the Gaza war, which has spread conflict across the Middle East.

Lebanon's government could choose to use an existing social protection program that was put in place during the COVID-19 pandemic that allows for financial support to be sent to individuals, Bjerde said.

"It has the benefit of being totally digital so you can reach people, plus it can be verified a bit... so we will also probably use that to top up the social safety net for those that are particularly affected."

Up to 1 million people have been internally displaced in the country, she added: "So it's important we focus on that".

Lebanon's finance ministry and economy ministry did not immediately respond when asked for comment.