Lebanese Parliamentary Division on Continued Support for Commodities

The Lebanese Parliament was divided yesterday by the subsidy of consumer goods, petroleum derivatives and mandatory reserves in the Bank of Lebanon, in a session not attended by the governor of the Banque du Liban, Riad Salameh, and his third deputy it represented it, amid warnings that the Central Bank could not provide the funds needed to support commodities with diminishing existing reserves. It has a strong currency.
The joint committee session, which was held yesterday in the presence of the World Bank Regional Director, Saruj Kumar Jah, did not produce any recommendations, due to divisions on the continuation of support and on the use of the mandatory reserve in the Central Bank of Lebanon to continue it. The mandatory reserve at the Banque du Liban is the money that the Central Bank requires banks to deposit when opening the bank, as a guarantee for depositors. The vice president of Parliament, Elie Ferzli, was content to say that the representatives “recommended during the session that the government present practical proposals attached with clear data on support and reservations for discussion in the next session.”
The session witnessed debates and discussions on the subject of support and mandatory reservations. Opinions varied on whether or not to increase subsidies and on the issue of mandatory reserves, and whether it is from people’s deposits, and deputies emphasized that it was from people’s money in banks. Others called for streamlining support, stopping smuggling, and forming a government as soon as possible to formulate a comprehensive economic and financial plan. The deputies called for the activation of the interim government and the elaboration of a plan that will be discussed in the committee session.
The secretary of the Democratic Rally Bloc, Representative Hadi Abu Al-Hassan, stated that “what is required is to form a government, emphasize reforms and then bring in aid, but in light of the current political stumbling block, we call on the government interim to take responsibility, come together and make decisions. ” And Abul-Hassan believed that “Lebanon has a limited reserve. Either part of it is used in two months and then the prohibited is reached, or the use of this amount is prolonged until political solutions are found, the government is born and they are implemented. the reforms “. Abu Al-Hassan warned that “the process of streamlining support alone is not enough. Rather, what is required is to control the smuggling process.”
For his part, a member of the Block of the Future, MP Muhammad al-Hajjar, asked: “Where should the necessary funds be secured for continued support?” Turning to the mandatory reserve file, explaining that it is “a reserve in national currency requested by the Central Bank from local banks”, highlighting that these funds “are not owned by the central bank nor are they owned by the State”, adding that “these funds They are owned by people, so no one can Confiscate these deposits. He said: “The discussion must be part of a complete plan through which we agree with the IMF, and the priority remains the formation of government, and the guiding support policy cannot be effective if it is not accompanied by curbing the smuggling”.
Deputy Farid al-Bustani, a member of the “Strong Lebanon” bloc, said: “The reserve is owned by the depositors, so it is not allowed to damage it. And because we need quick decisions and not plans, its implementation may take a long time. valuable time we don’t have. ” He suggested continuing to directly subsidize some basic materials, such as flour, medicines for chronic diseases and infant formula, as long as the number does not exceed ten, and the gradual support for electricity, and to issue a “financial support card with a measured amount to families most needy. “
A member of the Development and Liberation Bloc, MP Ali Hassan Khalil, stated that “total support for the middle and poor classes does not exceed 25 percent, and most of the support does not extend to the poorest families, since that there are 155,000 families below the upper poverty line and 260,000 families below the poverty line. The lowest, and therefore we have half of the Lebanese classified among the poor who cannot secure their livelihood under the current circumstances. He said: “Our duty is to promote direct support for the poor classes in such a way that 75 percent of the support is not lost to foreigners or the well-to-do who can bear this imposition,” and emphasized that “this matter for us alone it can be ensured through legal legislations that guarantee protection “. Poor families “.
Deputy George Akis, a member of the “Strong Republic” bloc, said that “the government is responsible for the plans and for defining the meaning of the rationalization of support and of the executive steps for this rationalization.” And formulate it with a plan that will present to the House of Representatives within a maximum period of one week; Because we do not have the luxury of time, and then the parliamentary blocs must assume their responsibilities ”.