Beirut - Marwa Shaheen - Beth:
The Lebanese Minister of Economy and Trade, Amin Salam, said that Lebanon did not go bankrupt, but it stumbled financially, and it has many capabilities and ingredients that are estimated in billions, and can be invested in rebuilding the country, expecting the Lebanese economy to recover after the conclusion of the agreement with the International Monetary Fund a year or two.
He added, in an interview with the Russian news agency Sputnik, that Lebanon is in a state of revival, restoration and rescue of the economy, and that it is able to implement all the conditions of the International Monetary Fund, and is now seeking through the House of Representatives to approve all the required laws, stressing that despite the difficult conditions, they are the best solutions. To pull the Lebanese economy out of its depression.
The Minister of Economy confirmed that the bread crisis in Lebanon suffers from most countries of the world, especially Arab ones, after the Russian-Ukrainian events, and that the government has allocated $36 million to cover wheat subsidies for citizens for a month, in addition to working on a $150 million program with the World Bank. In order to secure the sustainability of wheat for the next 9 months, until solutions are found, and the situation in general in the region crystallizes, this program acts as a safety valve that protects food security in Lebanon, specifically with regard to securing wheat and bread.
And he continued that the economic situation today in Lebanon, as everyone sees, there is a stumbling block in the financial and banking sector, and the economic situation is in a state of revival, restoration and rescue, as last week we reached a preliminary agreement with the International Monetary Fund, to move forward with the economic recovery plan, and to implement The reform program with the Fund, we are in a state of revival and restoration of the economy, and there are positive indicators during the current and next week, with the intention of full support for this reform phase that the Lebanese government is working on by the Gulf countries, and we hope that there will be positive results soon.
As for the economic reform steps, Salam said that at the forefront of the steps to get out of the financial and economic crisis in Lebanon comes the need to restructure the banking sector and restore confidence in the Lebanese economy to attract foreign investments. Among the basic conditions that must be implemented to move forward in concluding the agreement with the International Monetary Fund, which help in triggering the economic downturn, such as the Competition Law, the Capital Control Law, and the Budget Law for 2022, all of which are reform laws that put the economy train on the right track.
As for the wheat and flour crisis, he said that it is not only a Lebanese crisis, but has become a regional crisis today that most Mediterranean countries suffer from, Arab countries including Lebanon, Egypt, Jordan and Syria, and there are great challenges facing countries with regard to wheat and flour after the Russian-Ukrainian war, and we are in Lebanon We have allocated $15 million to complete the process of supporting the Lebanese state for wheat for citizens, and there is another appropriation of $21 million that is due to be approved next week. This funding covers the citizens and the state’s need for subsidized wheat for about a month.
There are quantities of wheat ranging from 50 to 60 thousand tons on their way to Lebanon, and it is expected to arrive next week, in addition to the fact that the Ministry of Economy is working on a program with the World Bank worth 150 million dollars in order to secure the sustainability of wheat for the next 9 months, until solutions are found. The situation in the region has crystallized in general, and this program acts as a safety valve that protects food security in Lebanon, specifically with regard to securing wheat and bread.
And in the file of the Capital Control Law, Salam explained that the Capital Control Law has been surrounded by great controversy, for several reasons, the first of which is that in all countries of the world this law is approved immediately when the state stumbles or has a financial crisis, as is the case in Lebanon, and it was supposed to The previous government took this measure two years ago. There are countries such as Greece and Cyprus that implemented the law within days of its crisis, and this law in Lebanon is applied unofficially today. Capital Controls already exist; Since the banks control the amount of money that the depositor can access, it has become necessary to put it in the legal framework to avoid judicial and legal problems.
Today, after the approval of the government, and then the House of Representatives, on the Capital Control Law, we have thus established a new framework for the banking sector that protects the depositor and also protects the financial sector from any legal or judicial impurities. Urgent to speed up the passage of law as soon as possible.

And about the possibility of obtaining support from the Arab Gulf states, he said: Today we are still in an optimistic phase under study. The Arab Gulf first needs to restore confidence in the Lebanese state and in the Lebanese economy, and restoring this confidence requires work and proof, and the principle of the return of Saudi ambassadors comes as an initial stage. From this support, and the messages that reached us with the ambassadors upon their arrival again focus on starting a new page with Lebanon based on support, while monitoring the steps and their repercussions on the economy. In the midst of the previous crisis, there will be a reopening of tourism and visits to the Lebanese, which will revive the Lebanese economy. As for the third stage, the Gulf investment will be in the Lebanese infrastructure, specifically in the sectors that will restore the Lebanese economy to its vitality, such as the electricity, water, communications and public utilities sector.
When asked about the fact that the Lebanese state declared bankruptcy, he replied: “I, as the Minister of Economy, categorically refuse to say that Lebanon is a bankrupt country. Financially with billions of billions of dollars, which, after investing, can rebuild the state and the homeland, in addition to that Lebanon is the second largest Arab country in gold stock after Saudi Arabia, and other matters owned by the Lebanese state. Lebanon returned to the Arab embrace, and we guarantee to the citizens that Lebanon will improve and progress for the better within a year or two.”