End the political deadlock, support group tells Beirut
The International Support Group for Lebanon (ISG) has voiced its dismay over delays in the formation of a government in the crisis-racked country and called on Lebanese authorities to implement urgent reforms.
In a statement on Wednesday directed at Lebanon’s leaders, the group warned that as the political stalemate in the country drags on, “the social and economic crisis is getting worse.”
The ISG called on Hassan Diab’s caretaker government to “fully implement its immediate responsibilities,” adding that the “overriding need is for Lebanon’s political leaders to agree to form a government with the capacity and will to implement necessary reforms without further delay.” Pragmatic legislative steps are needed to alleviate the “economic stress faced by Lebanese families and businesses,” it said.
The ISG was launched in 2013, and includes the UN, along with China, France, Germany, Italy, Russia, Britain and the US, the EU and the Arab League.
In its statement, the group welcomed France’s plan to hold an international conference in support of the Lebanese people by
early December. The forum will be co-chaired by the UN.
However, the summit “did not detract from the urgent need for government formation and reforms,” it said.
On Wednesday, Reuters quoted
“an official source” who claimed that Lebanon’s central bank is considering reducing the level of mandatory foreign exchange reserves in order to continue supporting basic imports next year, with the already low reserves dwindling.
According to the source, Riad Salameh, the central bank governor, met with ministers in the caretaker government on Tuesday to discuss cutting the mandatory reserve ratio from 15 percent to 12 percent or even 10 percent. Foreign exchange reserves are currently about $17.9 billion, leaving only $800 million to support imports of fuel, wheat and medicine until the end of the year.