Beirut urges unity after Hariri quits

Lebanon’s economy can cope with resignation, says finance minister

BEIRUT (Reuters) – Lebanon’s president appealed for national unity on Monday after prime minister Saad Hariri quit in a broadcast from Saudi Arabia, toppling the country’s coalition government that grouped the country’s main sectarian factions.

His resignation again exposed Lebanon to the sharp end of rivalry for Middle East predominance between Sunni Saudi Arabia and Shi’ite Iran, which has also wrought upheaval in Syria, Iraq, Yemen and Bahrain.

In a televised speech on Saturday, Hariri – a Sunni – shocked his small nation by saying he was resigning and feared an assassination plot against him, accusing Iran and its Lebanese ally Hezbollah of breeding strife in the Arab world.

The government, which was painstakingly devised to accommodate key sectarian groups, includes the Iranbacked Shi’ite Hezbollah. Its leader Sayyed Hassan Nasrallah accused Saudi Arabia of forcing Hariri to step down and said there were “legitimate questions” over whether he had been detained in the kingdom.

Aides to Hariri, whose family made its fortune in the Saudi construction industry, strongly denied such claims.

Lebanese Interior Minister Nohad Machnouk said on Monday he was under the impression Hariri would return to Beirut within days. He said a meeting between Saudi King Salman and Hariri on Monday, reported by Saudi media, showed “rumors” were untrue – an apparent reference to speculation that Hariri was being held in Saudi Arabia or forced to quit.

The furor in Lebanon over Hariri’s status came as Saudi Arabia underwent an anti-corruption purge in which royals, ministers and investors have been arrested as the putative next king tightens his grip on power.

Lebanese President Michel Aoun convened a meeting with ministers and top security officials at Baabda palace, telling them that political leaders had been responsive to calls for calm, his office said.

“He stressed that security, economic, financial and political stability is a red line,” Justice Minister Salim Jreissati said after the meeting.

Aoun will take no steps to decide on whether to accept the resignation before Hariri returns from abroad, said Jreissati, who is politically aligned with Hezbollah.

“The president is waiting for Hariri’s return to hear from him personally,” he said. “This indicates a sovereign vision... and that the resignation must be voluntary in every sense.”

Aoun also planned to meet the finance minister and central bank governor in the afternoon.

The central bank sought to calm fears that the political turmoil would hit Lebanon’s already fragile economy.

Governor Riad Salameh told local television that the monetary situation was stable on Monday and markets were normal. There was no danger to the Lebanese pound, which is pegged to the US dollar, he said.

Also. Lebanon and its financial institutions can cope with Hariri’s resignation, Finance Minister Ali Hassan Khalil said on Monday.

“We are confident in the stability of the financial and monetary situation in the country. There are no very big challenges ahead of us,” Khalil said.