The parliament approved yesterday, two bills related to the program of assistance to the most vulnerable people in relation to the economic crisis, this with the amendments demanded by the World Bank, thus returning the ball to the court of the government, which has his turn must initiate the launch of this program.
Prime Minister Najib Mikati specified that the sums will be paid in dollars at the request of the World Bank. Negotiations are also underway with the international institution to reduce operating expenses.
The entry into force of this program – which was originally supposed to take place before the lifting of subsidies from the Banque du Liban – is indeed late, between refusal of the Banque du Liban to allow the payment of aid at real parity or in foreign currency as requested by the World Bank, preferring a rate of 6,240 LL / USD at the start, or even today, the political crisis inducing the paralysis of the meetings of the Council of Ministers, which would not be necessary, believe some observers.
The real reason for this delay would be linked to the fact that the financing of the World Bank would henceforth be insufficient to cover all the people who could benefit from it because of the worsening economic crisis. This would henceforth require the use of the special drawing rights of the IMF and that of the treasury.
Some also fear that this program could turn into an electoral map during the next legislative elections in March 2022. They thus wish to delay the establishment of this one in order to fear to see their political adversaries use it to their dependence.
