Lebanese FM to Meet Le Drian in Paris as Economic Crisis Continues

Arab World

February 26th, 7:57am

Beirut - Asharq Al-Awsat

French Foreign Minister Jean-Yves Le Drian. (AFP)

Lebanese Foreign Minister Nassif Hitti is expected to travel to Paris this week for talks with his French counterpart. Lebanese official sources told Asharq Al-Awsat that the meeting with Jean-Yves Le Drian will take place on Friday. Discussions will focus on Lebanon’s severe economic and financial crisis. France will be clear in underscoring its commitment to the pledges made during the 2018 CEDRE conference that was hosted by Paris. Lebanon has yet to fulfill the economic and financial reform pledges it made at the conference. Paris’ assistance to Beirut in ending its crisis hinges on its implementing the much-needed reform. Foreign governments and donor institutions pledged $11 billion in financing to Lebanon for a 12-year infrastructure investment program at CEDRE, on condition that it carries out reforms. Given the massive challenges the Lebanese government is facing and fearing its inability to cope with them, France tasked Finance Minister Bruno Le Maire with discussing its crisis with his counterparts during the G20 meetings in Riyadh last week. He met with US Treasury Secretary Steve Mnuchin and several Arab officials. They discussed setting up a Paris-based investment fund for Lebanon if the government implements the necessary reform. A Lebanese diplomatic sources urged through Asharq Al-Awsat Prime Minister Hassan Diab to speed up reform measures, starting with the electricity sector and combating corruption. “France always stands ready to help Lebanon. It has always been the case in the past and it will be the case in the future...” Le Maire said Sunday at the end of a meeting of finance officials from the Group of 20 (G20) major economies. “If there is any help required from Lebanon, France will be there.” Lebanon’s long-brewing economic crisis spiraled last year as the country’s capital inflows slowed and protests erupted against the ruling elite. A foreign currency liquidity crunch has forced banks to impose tight restrictions on access to hard currency and transfers abroad and the Lebanese pound has slumped. As the crisis deepens, hitting ordinary Lebanese hard, there is no sign of foreign aid. Western and Gulf Arab states that helped in the past have made clear that any support hinges on Beirut implementing long-delayed reforms to address root causes such as state corruption and bad governance. Mnuchin told Reuters in an interview that Washington was keeping a close eye on the situation. “It’s something we’re monitoring – both the political and economic issues there,” he said. “Our interest is in the people of Lebanon. We want there to be safe environment where they can succeed economically and live as they want to.” An International Monetary Fund (IMF) team has discussed all possible options in recent meetings with Lebanese officials, who are seeking technical advice for tackling the crisis as Beirut mulls a plan for dealing with fast-approaching debt payments.

from Asharq AL-awsat https://aawsat.com/english/home/article/2150296/lebanese-fm-meet-le-drian-paris-economic-crisis-continues