A Bundle Of English Reports, News and Editorials For March 15-16/2020 Addressing All That is happing In the Iranian Occupied & Oppressed Lebanon

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A Bundle Of English Reports, News and Editorials For March 15-16/2020 Addressing All That is happing In the Iranian Occupied & Oppressed Lebanon
Compiled By: Elias Bejjani
March 16/2020

Titles For The Latest English LCCC Lebanese & Lebanese Related News & Editorials published on March 15-16/2020
Lebanon Coronavirus Cases Rise from 93 to 99
Health Ministry: Number of confirmed COVID-19 cases rises to 99
Aoun addressing the Lebanese ahead of Cabinet special session: Current health situation requires the declaration of a ‘state of general mobilization’ in all Lebanese regions
Supreme Defense Council decides to submit a ‘general mobilization’ request to Council of Ministers
PM Hassan Diab’s speech after extraordinary Cabinet session
Aoun Defends Coronavirus Measures, Says Health Emergency Needed
Govt. Closes Private, Public Institutions, Shuts Airport from Wednesday
Security Forces Clear Seaside Corniche after Crowding
Al-Rahi Urges Citizens Not to Leave Homes unless Necessary
Roukoz, Alameh Donate Salaries to Hospitals
Lebanon declares state of “public health emergency,” shuts down airport/Georgi Azar/Annahar/March 15/2020
Eurobond default sounds death knell for Lebanon’s system/Makram Rabah/The Arab Weekly/15/2020
Diab must face reality if he is to steer Lebanon out of its crises/Khairallah Khairallah/The Arab Weekly/15/2020
Will Lebanon’s Eurobond default spur much-needed reform?/Simon Speakman Cordall/The Arab Weekly/15/2020

The Latest English LCCC Lebanese & Lebanese Related News & Editorials published on March 15-16/2020
Lebanon Coronavirus Cases Rise from 93 to 99
Naharnet/March 15/2020
Lebanon’s confirmed coronavirus cases have surged from 93 to 99, the Health Ministry announced at noon Sunday.
In a statement, the ministry said the tally includes the cases reported by both the state-run Rafik Hariri University Hospital and the country’s private hospitals. It added that it is continuing to monitor all those coming from countries witnessing virus outbreaks and those who have come in contact with them. The ministry is also investigating “some few cases” of an unknown source, it said, urging citizens to abide by authorities’ instructions and stay in their homes unless it is extremely necessary to go out. The government is expected to declare a state of emergency on Sunday afternoon. Educational institutions, restaurants, nightclubs, pubs, cafes, exhibitions, parks, cinemas, malls and other gathering venues have been closed since several days as part of the measures against the virus.Lebanon has also banned flights from eleven hardly hit countries, with critics lamenting that the decision came too late.

Health Ministry: Number of confirmed COVID-19 cases rises to 99
NNA/March 15/2020
The Ministry of Public Health announced, in a statement on Sunday, that “ninety-nine new laboratory-confirmed cases infected with the novel Coronavirus (COVID-19) have been registered, including the cases diagnosed at the Rafic Hariri Governmental Hospital, and those reported from other university hospitals accredited by the Ministry.”The Health Ministry also reminded citizens to remain at home and not to go out “unless absolutely necessary.”

Aoun addressing the Lebanese ahead of Cabinet special session: Current health situation requires the declaration of a ‘state of general mobilization’ in all Lebanese regions

NNA/March 15/2020
President of the Republic, General Michel Aoun, addressed the Lebanese at the beginning of the special cabinet session convening this afternoon at Baabda Palace, devoted to tackling developments and measures to confront the emerging Corona virus.
“The current stage represents a health emergency that entails declaring a state of general mobilization in all Lebanese regions,” said Aoun.
“Today, in view of the fast spread of this epidemic, the global and local inability to contain it so far, and the increased number of cases, the Council of Ministers is holding this extraordinary session to adopt a series of exceptional and temporary measures which will be announced at the end of the session,” he added.
The President called on the Lebanese, each from his/her own position, to commit to awareness and comply with the required medical instructions that are being broadcasted by official medical and media sides. He also urged citizens to demonstrate “the most noble and highest manifestation of human commitment to each other, with the required compliance, in view of ensuring the highest levels of protection, keeping away from mingling and staying home.”
“It is the moment of national solidarity for all of us. Together, we must concretize this solidarity, in both of its humanitarian and societal dimensions, with innovative and new ways,” Aoun asserted.
“We are all one in the face of any danger that threatens the safety and life of any Lebanese, in any Lebanese region,” the President corroborated.
In his detailed address, the President of the Republic said:
“My fellow Lebanese ladies and gentlemen, dearly beloved,
It is the first time in about a century that Lebanon faces an epidemic with a global prevalence. It is the coronavirus which was classified by the World Health Organization as a pandemic a few days ago. It spreads in various ways and may be life-threatening, as it may cross borders, systems and countries. To date, science has not been able to find a proper prevention or treatment for it. It therefore requires the highest levels of prevention and protection to curb the spread of the virus.
For weeks now, we have not failed at all to confront it, with determination, will and awareness, instantaneously and preemptively. The various health sectors in Lebanon have been mobilized, under the direct supervision of the Prime Minister and the Ministerial Committee for Coronavirus prevention. All the necessary measures have been taken, at an exemplary speed, in order to counter this epidemic and prevent its spread in our country and among our nationals. The measures that were taken and the speed in which they were executed at both public and private levels, amid very complicated economic and financial circumstances, earned the appreciation of international bodies, especially that Lebanon has been a pioneer in taking them compared to other brotherly and friendly States whose populations are larger, and so are their incidence rates.
Today, in view of the fast spread of this epidemic, the global and local inability to contain it so far, and the increased number of cases, the Council of Ministers is holding this extraordinary session to adopt a series of exceptional and temporary measures which will be announced at the end of the session, especially that the current situation represents a health emergency that requires the declaration of a state of general mobilization in all Lebanese regions.
My fellow Lebanese ladies and gentlemen,
It is the moment of truth for us all, the first in our modern history. Indeed, before the health of each citizen, all the narrow political considerations fall. It is absolutely no time to score points and exchange accusations, nor is it time for political exploitation of whichever nature, because this epidemic does not distinguish between loyalist and opposition, nor between a claimant of the right and an indifferent.
It is the moment of national solidarity for all of us. Together, we must concretize this solidarity, in both of its humanitarian and societal dimensions, with innovative and new ways. We are all one in the face of any danger that threatens the safety and life of any Lebanese, in any Lebanese region.
On my part, I will not relent in view of securing the necessary protection from this epidemic for every citizen and resident, and the necessary treatment for every affected person. I am confident that the Council of Ministers acts with one heart and one hand, alongside the concerned authorities, in order to attain this goal; and this is at the core of the national duties that we shoulder.
My fellow Lebanese ladies and gentlemen,
I share the concerns of each and every one of you, about yourselves, your parents and your loved ones, but fear was never our way, as Lebanese, to confront dangers.
Each one of us is invited, from their own position, to commit to awareness and comply first with the required medical instructions, which are being broadcasted and spread by the various official, medical and media parties to explain how best to abide by them.
We are also invited to the most noble and highest manifestation of human commitment to each other, with the required compliance, in view of ensuring the highest levels of protection, keeping away from mingling and staying home.
These hard days that we are going through are not a prison nor a punishment, as they are not – at the same time – a chance to stop the cycle of life or surrender to void. Everyone is invited to continue their work, from home, in the manner that they deem appropriate, so that learning is pursued for students, and work for workers, and so that institutions remain as “alive” and active as possible.
Let us avail ourselves of these days, no matter how long they may last, to ascertain that we are one people, worthy of life and capable of overcoming its hardships.
My fellow Lebanese ladies and gentlemen,
You have siblings and parents who have volunteered to help in the medical confrontation operations at our hospitals. On behalf of all of you, I salute each one of them, for they are the role models of dedication for the safety and life of the Lebanese.
To the medical and nursing corps in our governmental and private hospitals, who are today at the frontline of confrontation, and of whom some members have been affected by this epidemic, we owe a tribute of respect and a call to move forward.
To every person who has been affected by this epidemic, we pray for a prompt recovery, and we all bow out of reverence before the memory of the victims who have fallen to it.
My fellow Lebanese ladies and gentlemen, dearly beloved,Our national unity has been and remains our source of strength and our shield of protection. Thanks to it, we have achieved our invincibility, and today, it will support our strength and confirm our victory against this epidemic, in view of regaining, as soon as possible, our normal regular life and the passion of living that we stand out for.
Long Live the Lebanese! Long Live Lebanon!”

Supreme Defense Council decides to submit a ‘general mobilization’ request to Council of Ministers

NNA/March 15/2020
The Supreme Council of Defense, which convened this afternoon at Baabda Palace under President Michel Aoun, and attended by Prime Minister Hassan Diab, concerned cabinet ministers, Army Chief and various security heads, appealed to the Council of Ministers to confront the threat of the Corona virus, by declaring ‘general mobilization’ in the country, as stipulated by Article 2 of Legislative Decree No. 102/1983 (National Defense). Following the meeting, the Council’s Secretary General, Major General Mahmoud al-Asmar, said: “His Excellency, the President began the session by briefly touching on the steps and measures to be taken in the context of the coronavirus prevention…The President considered that the situation has reached a health emergency stage, thus requiring the adoption of the procedures stipulated in Article 2 of Legislative Decree No. 102/1983 (National Defense), represented by declaring general mobilization.”He added that the Prime Minister, in turn, stressed that the status quo now calls for more comprehensive steps. “The Public Health Minister also presented the situation in terms of hospitalization and health, highlighting the importance and necessity of following-up on the issue from all its aspects,” al-Asmar went on.He added that heads of military and security services also briefed the conferees on the data available to them regarding this epidemic and ways to deal with it. At the end of the Council’s meeting, public administrations and military and security services were requested to follow-up on field conditions and report their findings to the concerned authorities.

PM Hassan Diab’s speech after extraordinary Cabinet session

NNA/March 15/2020
The Information office of Presidency of the Council of Ministers, issued the speech of PM Hassan Diab after the extraordinary cabinet session: ‘Dear fellow Lebanese
Our country is going through difficult times, burdened by worries, crises, and problems. Now is th e time for patience, courage, reason, wisdom, peace, and carefulness. Now is the time for care, for protecting ourselves and those we cherish most: our families, children, brothers, sisters, and friends.
Now is the time for cooperation, mobilization, volunteering, initiatives, help, support, good deeds, and saving others. Today, more than ever, Lebanese need to be united, as they have always been in the face of crises. As I express my pride towards all efforts made by institutions and entities to contain the virus that struck our Lebanon and the whole world, threatening each and every one of us, I call on all Lebanese to abide by the highest levels of alert, to be able to control this epidemic and defeat it. And to every doctor out there, every nurse, every assistant, every pharmacist, every hygiene worker, every Red Cross member, every WHO member, and every volunteer, on behalf of all Lebanese, I salute you for all your efforts and sacrifices, for your humanitarian compassion and patriotism.
My fellow Lebanese, Until today, we have succeeded in hindering the spread of the virus, since it began to spread across the globe as of December 31st, 2019.
A scientific, practical, and proactive strategy has been set forth to protect the Lebanese citizens, exceptional measures have been adopted since the beginning, and Lebanon was able to contain the first wave of the virus without commotion, because we are doing our duties. Though we are facing criticism due to our measures to suspend schools and universities, we took these actions ahead of the world, and they positioned us several steps ahead of the virus. And when these actions proved to be adequate, outbids became more frequent, prioritizing political investments over the people’s safety.
Today, Lebanon is experiencing a state of emergency, therefore, the Government declares a state of general mobilization until the end March 31st, 2020.
We have taken advanced measures to halt travel to certain countries before the World Health Organization had declared them contaminated, such as: Italy, Iran, Great Britain, Egypt, France, Germany, Syria, and Spain, as we had suspended the access of nationals of these countries, and ensured the safe return of our citizens and their family under the World Health Organization’s close supervision.
Exceptional measures were also adopted at the airport, and we continued implementing them to ensure adequate testing of travelers arriving to Lebanon, from body-temperature control, on-board tests, and isolation for fourteen days.
Furthermore, the Ministry of Interior assigned a team to supervise and implement the self-isolation strategy. We have asked all public and private hospitals to elaborate emergency preparation plans, and have assigned the Rafik Hariri Hospital as the sole center to receive patients, to avoid exhausting all hospitals and to safeguard healthcare for patients that are not infected by coronavirus.
Three weeks ago, a decision was made by the Government to suspend schools, universities, and nurseries. This measure proved to be the main factor that limited the spread of the disease and allowed its containment. Ten days ago, cafes, restaurants, bars, public parks, ski resorts, and leisure centers of all kinds such as public and private sports courts, swimming pools, health centers and others were closed. We have also called upon both public and private sectors to adopt rotating schedules to limit as much as possible the presence of employees, in a way to ensure continuous working hours.
Moreover, we have asked all religious authorities to take extreme measures to limit gatherings in places of worship and their relevant facilities. We have furthermore implemented the safe-distance principle between individuals, and have issued recommendations a week ago, addressed to our citizens, inciting them to avoid crowded places, to suspend all social events, gatherings at homes as well as outside, and to only leave their houses in cases of extreme necessity. These strategies have led to a great reduction – more than 80%, – of airport activities, as well as road traffic. The necessary instructions were given in order to activate the Risk, Catastrophe, and Crisis Management units and committees within the Presidency of the Council of Ministers as well as governorates, in addition to which, we have agreed with the private sector to adopt emergency response strategies that would adequately cover all health and non-health sectors, and their implementation has already begun.
Additionally, we have commissioned all the relevant official administrations to adopt the necessary measures without exception, within the scope of their capabilities and resources, in order to break out of traditional and routine methods, and secure the strategies that were undertaken. The measures and actions we have taken to protect the Lebanese represent the highest level of what may be constitutionally adopted, and never in the history of Lebanon have these been implemented. Any discourse out of this context is void of meaning. What is asked of all the forces today, is to measure up to national responsibilities, to gather around the State and its institutions, to provide support and counsel, to save the Lebanese people.
There is no doubt that these measures will affect our economy, much like international economies have been affected. However, the people’s lives and safety are far more precious, and remain our priority above all else. I understand the Lebanese people’s fears. Over the last few weeks, my thoughts have been with you… fathers, mothers… brothers… sisters… children and grandchildren… cousins, friends, neighbors, and colleagues… My thoughts were with all of you, on how to protect and save you. I will remain as transparent as you have known me to be, in stating the facts as they truly are, and we will do all that we possibly can to protect the Lebanese people.

Aoun Defends Coronavirus Measures, Says Health Emergency Needed

Naharnet/March 15/2020
President Michel Aoun on Sunday defended the measures that have been taken by Lebanese authorities to confront the COVID-19 coronavirus. “Over the past weeks, we have not been lax at all in confronting (the coronavirus crisis) with determination, will and awareness and in an instant and preventative manner,” Aoun said in an address to the nation at the beginning of an emergency Cabinet session in Baabda. “All the necessary measures were taken in an optimal pace to confront the threats of this pandemic and limit its spread,” the president added. He announced that the Cabinet would approve extraordinary and preventative measures at the end of its session, noting that “the current state requires a health emergency and general mobilization.” “The time is for not scoring points, exchanging accusations or political exploitation,” Aoun urged. The Cabinet session was preceded by a Higher Defense Council meeting and bilateral talks between Aoun and Prime Minister Hassan Diab. The decision to declare “general mobilization” was taken in the Defense Council meeting and is expected to be officially endorse by Cabinet. Lebanon has so far confirmed 99 coronavirus cases including three deaths, according to a Health Ministry statement issued at noon Sunday. Educational institutions, restaurants, nightclubs, pubs, cafes, exhibitions, parks, cinemas, malls and other gathering venues have been closed since several days as part of the measures against the virus. Lebanon has also banned flights from eleven hardly hit countries, with critics lamenting that the decision came too late.

Govt. Closes Private, Public Institutions, Shuts Airport from Wednesday
Naharnet/March 15/2020
The government on Sunday declared “general mobilization” over the coronavirus crisis and announced a two-week lockdown of the country. The lockdown measures include asking citizens to “stay home unless it is extremely necessary” and a two-week closure of public and private institutions as well as the airport and the land and sea ports of entry. The airport will be closed from Wednesday until March 29 to all flights except for cargo planes and passenger planes carrying UNIFIL members, diplomatic crews, staff of international organizations and employees of firms linked to oil and gas drilling in Block 4 of Lebanon’s Exclusive Economic Zone. Lebanese citizens, foreign family members and holders of Lebanese residency permits will meanwhile be allowed to return to Lebanon from March 15 until March 18 on the condition that they test negative for coronavirus after taking PCR tests.
“This decision does not apply to those coming from countries already under a travel ban: France, Egypt, Syria, Iraq, Germany, Spain, the UK, Italy, Iran, China (including Hong Kong, Macau and Taiwan), and South Korea,” the Cabinet said in a statement issued after an emergency meeting and recited by Information Minister Manal Abdul Samad. The closure of institutions, from March 15 until March 29, will meanwhile exclude public institutions that perform vital tasks and private firms related to “food security” and the medical sector as well as banks, money exchange shops and import and export companies.
“We are in a health emergency and the government declares general mobilization until March 29,” Prime Minister Hassan Diab said after the cabinet session. “It is time for cooperation, mobilizing capabilities, volunteering and making initiatives to save others and the Lebanese,” he added. Calling on the Lebanese to show solidarity, Diab announced that so far, Lebanon has managed to “slow the spread of the virus.”“We have devised a scientific strategy to protect the Lebanese,” he said. “We have taken preventative measures and Lebanon has managed to contain the first wave of the virus,” he added.
Lebanon has so far confirmed 99 coronavirus cases including three deaths, according to a Health Ministry statement issued at noon Sunday.Educational institutions, restaurants, nightclubs, pubs, cafes, exhibitions, parks, cinemas, malls and other gathering venues have been closed since several days as part of the measures against the virus.

Security Forces Clear Seaside Corniche after Crowding
Naharnet/March 15/2020
Municipal police on Sunday cleared the landmark seaside corniche in Beirut’s Ain el-Mreisseh and Manara areas after scores of people flocked to it for strolling, jogging, swimming, fishing and other activities despite the coronavirus crisis. A statement said Beirut Governor Ziad Chebib asked municipal police to clear the area at the instructions of Interior Minister Mohammed Fahmi. Patrols will meanwhile continue around the clock in the capital, the statement said. Army intelligence agents meanwhile asked citizens to leave the Dbaye seaside corniche according to media reports.The country’s health authorities have warned against gatherings and the government is poised to declare a health emergency and general mobilization. Lebanon has so far confirmed 99 coronavirus cases including three deaths, according to a Health Ministry statement issued at noon Sunday. Educational institutions, restaurants, nightclubs, pubs, cafes, exhibitions, parks, cinemas, malls and other gathering venues have been closed since several days as part of the measures against the virus.Lebanon has also banned flights from eleven hardly hit countries, with critics lamenting that the decision came too late.

Al-Rahi Urges Citizens Not to Leave Homes unless Necessary
Naharnet/March 15/2020
Maronite Patriarch Beshara al-Rahi on Sunday called on the Lebanese not to leave their homes unless it is extremely necessary as a precaution against the spread of the COVID-19 coronavirus. “Brother and sisters, you came here despite the fears over leaving homes and mixing with people, but your faith and our faith remain stronger than fear,” al-Rahi said in his Sunday Mass sermon. But he stressed that it is crucial to observe caution through “avoiding leaving homes unless it is extremely necessary.”The patriarch also warned against gatherings, saying people should not sit close to each other and calling on believers to “benefit from religious media outlets which help us to pray in our homes.” Lebanon has so far confirmed 99 coronavirus cases including three deaths, according to a Health Ministry statement issued at noon Sunday. The government is expected to declare a state of emergency on Sunday afternoon. Educational institutions, restaurants, nightclubs, pubs, cafes, exhibitions, parks, cinemas, malls and other gathering venues have been closed since several days as part of the measures against the virus.Lebanon has also banned flights from eleven hardly hit countries, with critics lamenting that the decision came too late.

Roukoz, Alameh Donate Salaries to Hospitals
Naharnet/March 15/2020
Independent MP Chamel Roukoz and Development and Liberation bloc MP Fadi Alameh on Sunday announced that they will donate their salaries and compensations to hospitals as a contribution to the anti-coronavirus fight. In a tweet, Roukoz said he took his decision “based on the principle of national and humanitarian solidarity,” saying the donation will go to the Bouar state-run hospital. He also urged all citizens to offer assistance to medical crews, hospitals and “even individuals who want to carry out tests and necessary treatments.”Alameh for his part hailed the efforts of the employees of the state-run Rafik Hariri University Hospital and said his salary and compensations will go to the employees throughout the duration of the crisis. Lebanon has so far confirmed 99 coronavirus cases including three deaths, according to a Health Ministry statement issued at noon Sunday.

Lebanon declares state of “public health emergency,” shuts down airport
Georgi Azar/Annahar/March 15/2020
BEIRUT: Lebanon declared Sunday a state of “public health emergency” and announced “full mobilization” to better combat the coronavirus outbreak in the wake of a dramatic increase in cases over the weekend.
Lebanon’s airport will be shut down from March 18 until March 29, barring diplomats and UNIFIL personnel, Information Minister Manal Abdel Samad said. All other maritime and land crossings will also be closed. The policy was announced after a meeting between Lebanon’s top officials in response to the outbreak which has infected over 100 people and killed three. “This outbreak concerns all Lebanese, who must now unite to confront this grave danger,” President Michel Aoun said.
It will allow authorities to confine people, limit their movement, shut down factories and ration food. The majority of the public and private sectors will also be on lockdown in a bid to contain the spread of the virus. Banks’ operations will be restricted to “the bare minimum,” Samad said, with the Central Bank exempted from the public closure. In a statement, the Association of Banks announced that all branches would be closed during this period, in line with the government’s “measures to confront the outbreak.” Schools have already shut down across the country, with movie theatres, gyms, cafes and restaurants also ordered to seize operations. Bakeries, supermarkets and pharmacies will continue operations.
“All the necessary measures were taken at an optimal pace to confront the threats of this pandemic and limit its spread,” Aoun added.
Lebanon’s government approved these measures following at the end of its session Sunday, noting that “the current state requires a health emergency and general mobilization.”
Spain ordered a similar lockdown after its number of cases jumped to the second-highest in Europe only behind Italy.
The current Spanish tally stands at 6,100 up by about 2,000 cases from Friday and seven times as much as Monday. About 190 people have died. Hospitals have scrambled to better equip themselves for a spike in cases, with the American University of Beirut Medical Center leading the charge.
It has transformed its Children’s Cancer Center of Lebanon into a makeshift coronavirus ward, cutting it off from the rest of the hospital. Other hospitals, including Saint Georges, Hotel Dieu and Rizk are undertaking similar initiatives in anticipation of a drastic increase in infections. “Lebanon has a total of 12,555 beds, including 2,026 beds in Intensive Care Units (ICUs),” Health Minister Hamad Hassan said Thursday.
China, where the virus is believed to have originated, also sent a team of experts along with medical and screening equipment to the cash-strapped Medeterean country.
Despite the government’s pleas calling for self-isolation, a number of Lebanese continued to heed its warnings while going about their day to day lives. In response, municipal police on Sunday cleared the landmark seaside corniche in Beirut’s Ain el-Mreisseh and Manara areas after hundreds of people flocked the area for leisure purposes. They were seen strolling, jogging, swimming and fishing before ordered to dismantle. Patrols will continue around the clock in the capital, a statement by the municipality said.

Eurobond default sounds death knell for Lebanon’s system
Makram Rabah/The Arab Weekly/15/2020
Countries, just like people, know their birth date but not the day of their demise. In this respect, Lebanon has proved to be an exception because, on March 9, Lebanese Prime Minister Hassan Diab announced that his government would default a $1.2 billion Eurobond debt.Lebanon’s entry into the not-so-prestigious club of defaulting countries is an announcement of the end of Lebanon’s economic model, one that has been in play since the establishment of the republic by the French mandate 1920.
The decision of the Diab government to default on its sovereign debt was somewhat expected because nearly all international rating agencies had forecast it. The big three credit rating agencies — Standard & Poor’s, Moody’s and Fitch Group — previously declared that the Lebanese government lacked currency reserves to pay the debt, which Beirut denied, even threatening to sue anyone who claimed otherwise.
The Lebanese state and Banque Du Liban Governor Riad Salame for years assured the public that the central bank had ample reserves, which proved to be a scandalous fallacy
While news of default was unfavourable for the international community and creditors of the debt, the Lebanese public welcomed the action — or lack thereof — because defaulting on the Eurobond saved what is left of the country’s much-needed foreign currency reserves to allow for the purchase of basic commodities such as wheat, medicine and fuel.
Ostensibly, the government’s decision to suspend payment came as a response to popular demand but, in fact, the Diab government had no other option after it failed to garner any financial support from the international community and turned down the possibility of an International Monetary Fund (IMF) bailout.
A week before Lebanon defaulted, Hezbollah took a very aggressive stand against the possibility of an IMF bailout, claiming that the financial package would include political terms that would infringe on Lebanon’s sovereignty.
If Hezbollah was truly mindful of its host country’s well-being, it should start by recalling its troops who are engaged in Iran’s regional expansion plan and stop its relentless attack against the Arab Gulf countries that, contrary to Iran’s empty promises, have always provided financial assistance to Lebanon and its people.
Yet the real tragedy for Lebanon is not its entry into the club of defaulting nations but rather the performance of the Diab government and its handlers, which might make this lifetime club membership. This is particularly the case because, until now, Diab failed to develop a clear and credible reform and action plan that considers the challenges of political and economic reform in Lebanon.
While it is correct that rescheduling a country’s debt does not necessarily mean its ultimate demise, in the case of Lebanon it is proof that the liberal economic model that the Lebanese hold dear and the hegemony of Iran and Hezbollah over all aspects of the state simply do not mix.
Diab’s announcing the default drove the final nail into the coffin of the Lebanese political establishment that keeps using the pretext of Hezbollah to derail and stall reform, a pretext that is no longer accepted by Lebanon’s regional Arab allies or the international community.
Contrary to what many in the Lebanese elite keep repeating, Lebanon’s problem is neither fiscal nor economic and sovereign debt restructuring, as proposed by the Diab government, will fail unless it is carried out by competent and politically willing and sovereign institutions, something Lebanon clearly lacks.
Thus, instead of regaining the sovereignty of the state and standing up to Hezbollah’s continued infringements of it, Diab and his entourage have systematically lowered the expectations of the Lebanese and tried to appease them by claiming that they are, indeed, mindful of their health and financial future.
Defaulting on the Eurobond is merely a symptom exposing the degree of decay of Lebanon’s entire political system, which is simply rotten to its core, a rottenness that no sweet-talking mediocre technocratic government can whitewash or salvage.
The pandemic spread of the coronavirus has aggravated the economic and political crisis. While it is certain that a cure for that virus will sooner or later be found, Lebanon’s political ailments have to be remedied from within and will require a new and capable cabinet that is not politically or morally bankrupt.
*Makram Rabah is a lecturer at the American University of Beirut, department of history. His forthcoming book, “Conflict on Mount Lebanon: The Druze, the Maronites and Collective Memory,” (Edinburgh University Press) covers collective identities and the Lebanese Civil War.

Diab must face reality if he is to steer Lebanon out of its crises

Khairallah Khairallah/The Arab Weekly/15/2020
It’s useful, from time to time, to resort to common sense and possess some level of modesty and realism, even if just a little bit.
That is the natural reaction to the speech March 7 during which Lebanese Prime Minister Hassan Diab announced Lebanon’s intent to default on its Eurobond debt. Lebanon borrowed a lot of money by issuing international bonds in euros and is unable to pay its dues because it is suffering from economic collapse.
When you are in that situation, it won’t help to talk about corruption in the country and how it developed to scandalous and outrageous levels. What one needs to hear is whether your government has a plan to get the country out of its mess.
It’s not enough to blame past administrations. What was even worse was that Diab got the past mixed up and could not distinguish between one stage and the next. He never mentioned the party or parties responsible for driving the country’s debt through the roof. He did not mention electricity in Lebanon, a sector that has been the fiefdom of the Aounist movement for 11 years. Corruption in that sector caused a $40 billion increase in Lebanon’s foreign debt.
If Diab does not want to clash with Lebanese President Michel Aoun’s Free Patriotic Movement, headed by Aoun’s son-in-law Gebran Bassil, can he at least have the courage to put his finger on the source of all of Lebanon’s ills: the illegal weapons of Hezbollah’s militia that are used to force Lebanon to join “the axis of resistance”?
By positioning itself in this axis, Lebanon sealed its Arab and international isolation and Diab was just speaking to himself when he declared Lebanon’s inability to pay its debt.
Lebanon’s foreign debt has reached about $90 billion and this is the first time in its modern history it refused to repay its obligations. Granted that Lebanon is not the first country to find itself in such a predicament but the crucial question is: Has it done what it should have done to guarantee itself the right to negotiate for rescheduling its debts in a way acceptable to international financial institutions and to friendly countries, especially the Arab donor countries that had always been ready in the past to help Lebanon?
Nothing of this sort has taken place and, to make matters worse, nothing has been prepared for the after-non-payment phase. Lebanon simply announced that it will not pay, then decided to negotiate.
Such a move does not reflect responsible political leadership concerned about the fate of the country as much as it reflects a desire to push the country further into the unknown, like the scenario that unfolded in Venezuela with the dire consequences that plunged the country into chaos and poverty, not knowing if it will ever get out of it.
It was important for Diab to correctly diagnose the country’s situation. He recognised that “Lebanon is going through a very delicate stage” and that “our reserves of hard currencies reached a critical and dangerous level.” And then what?
The prime minister has no choice but to face the truth instead of running away from it. There is a need for a minimum of humility and logic. There is no future for Lebanon without external support and Diab cannot secure that support for two obvious reasons: he is unacceptable to the Arab countries and he does not want to deal with the International Monetary Fund (IMF) because of Hezbollah’s veto of such a move.
Lebanon has only two paths to follow: reopen channels with the donor Arab countries, even though they are suffering from the sharp drop in oil prices, or to the IMF. Hezbollah, however, has blocked that one.
As for reforms Diab talked about and had been called for during the CEDRE Conference in 2018, thanks to the personal efforts of former Prime Minister Saad Hariri, that path has been closed. No reforms are possible in a country ruled by the illegal weapons employed in the service of Iran’s expansion project.
Ultimately, it must be recognised that Hezbollah does not care whether Lebanon survives. It is only interested in what Iran wants. Hezbollah deliberately overlooked everything that the Aoun cronies did in the electricity sector because it needed a Christian cover.
Does Diab have the audacity to open the file of the electricity sector or is his agenda dictated by Hezbollah and consists of attacking the banking sector in Lebanon?
The demonising campaign against Lebanese banks denotes a clear lack of knowledge of Lebanese history and of reasons for the country’s past prosperity and for how Lebanon’s banks formed an obstacle to the threat of collapse following the original sin of signing the ill-fated Cairo Agreement in 1969. At that time Lebanon signed off its end, which is going to be this time at the hands of Hezbollah rather than Palestinian weapons.
When there are declarations of the type “We do not need a banking sector that is four times larger than the size of our economy; therefore, a plan to restructure the banking sector must be prepared,” it can only be concluded that whoever said it and the parties behind him are deliberately sweeping aside the secret behind Lebanon’s survival and want to push the country towards a Venezuelan scenario. Are banks not part of the national economy?
Before Diab’s speech, there was a tiny glimmer of hope that Hezbollah would push towards giving the government room to manoeuvre to secure the savings deposited in banks by Lebanese citizens, some of whom have expatriated themselves in the four corners of the Earth to secure a better life for their families.
What the prime minister’s speech revealed was that what was required of Lebanon was to remain a “playing field.” Lebanon is required to remain an Iranian card at a time when the Islamic Republic is going through a deep crisis, from which it is unlikely to emerge unscathed and able to maintain its expansion project, of which Lebanon has become an integral part.
The current Lebanese government will find any way out of the state of collapse. In fact, it came to consecrate it and the proof is that it has no answers to simple questions from the Lebanese: Where are our bank deposits? Where is tourism? Where is foreign trade? Where is the clear stand on Iran’s exporting the coronavirus to Lebanon?
There is only one possible summary of Diab’s speech: This government cannot protect the money of the Lebanese people, nor can it protect their health. Therefore, some humility seems more than necessary.
*Khairallah Khairallah is a Lebanese writer.

Will Lebanon’s Eurobond default spur much-needed reform?
Simon Speakman Cordall/The Arab Weekly/15/2020
Lebanon is one of the most indebted countries in the world.
TUNIS – Lebanon has defaulted on its international debts for the first time. Through civil war and social and political turmoil, Lebanon had always met its economic obligations.
However, convulsed by a long-foreshadowed currency crisis and battered by the spread of coronavirus, Lebanese Prime Minister Hassan Diab said in a televised address March 7 that he was placing the needs of Lebanon’s citizens ahead of its fiscal responsibilities.
Announcing the country would not be paying the $1.2 billion Eurobond due March 9 he said: “How can we pay the creditors while there are people in the streets without the money to buy a loaf of bread?”
Few were surprised by Diab’s decision. Lebanon’s economy has been in decline for several years. Reports by the Financial Times in 2011 suggested Lebanon’s reliance on domestic consumption and hard currency remittances from the diaspora placed its economy at risk.
Over the following years, corruption and mismanagement along with Lebanon’s confessional system of government produced an economic crisis with no immediate solution.
Lebanon is one of the most indebted countries in the world, owing more than $90 billion, approximately 170% of GDP.
Official estimates in January stated that inflation was running at a year-on-year rate of 10%. However, a leading consumer association told Bloomberg News that prices have risen 45% since October, affecting purchasing power at an “unprecedented rate” as companies slash both jobs and pay.
“Since around August of 2019 and the dollar shortage at the banks, we’ve seen price hikes, a decline in consumer confidence and difficulties in importing and pricing basic goods such as wheat and fuel,” said Kareem Chehayeb an investigative journalist at the Public Source, an independent Lebanese media organisation.
Banks that remained open throughout Lebanon’s 15-year civil war are now closing early, cutting credit card limits and dramatically curtailing the public’s access to the country’s diminishing dollar supply.
“As the conditions worsened, we saw mass layoffs and salary cuts,” Chehayeb said. “Couple that with an inflated black market exchange rate dominating the markets and people’s lives have clearly worsened significantly.”
Mona Yacoubian, a senior adviser at the United States Institute of Peace, said: “Estimates already indicate that as much as 50% of the population live below the poverty line. Many people have faced layoffs and inflation is rising as the Lebanese pound continues to lose value. Many people are taking a de facto ‘haircut’ as their dollar-denominated accounts are translated into lira at a devalued rate.
“Unfortunately, more pain lies ahead in the short to medium term as austerity measures eventually are put in place following the default.”
“The medium- and long-term implications of the Eurobond default will very much depend on what measures and reforms Lebanon undertakes following the default. Obviously, a default is never good and Lebanon will necessarily pay a price in the markets for having failed to repay its debt,” she added.
Yacoubian said there remained the possibility that the default may spur much-needed reform, which, while including austerity, should “include a shift towards greater transparency and accountability and measures to combat widespread corruption, then the long-term prognosis for Lebanon is far better as the economy will be on a far more solid footing.”
Under typical circumstances, a country experiencing similar conditions would look to the International Monetary Fund (IMF) for support. An IMF delegation made a technical visit to Lebanon in February that it described as “very informative and productive.”
However, in the absence of a credible economic plan, the IMF is unlikely to offer Lebanon the level of support required to see it either through its present difficulties or to fund the fiscal stabilisation fund — estimated by former Economy Minister Nasser Saidi to be around $20 billion — to underpin any reform programme.Lebanon’s unique political circumstances may impede any IMF bailout. The Iran-backed Hezbollah, which wields strong influence in the country’s government, is unlikely to welcome what it would see as a surrender of sovereignty over any IMF bailout.
An analysis by the global risk consultancy HIS Markit after Lebanon’s default noted that Hezbollah “has repeatedly expressed its opposition to an International Monetary Fund bailout and the measures it would require.” These are said to include cutting bread subsidies, taxing fuel and raising the value added tax.
It is possible that the government may undertake reforms without IMF support, looking to cut spending and commence a longer-term plan of tax hikes without an internationally funded stabilisation programme.
Credit ratings agency Fitch has suggested that Beirut might raid deposits and savings held by the country’s banks, a possibility the government has yet to rule out.
*Simon Speakman Cordall is a freelance writer.