LEBANON US Report On The
Middle EastUNMACC identifies 590 Israeli cluster munition strike locations in Lebanon
The UN Mine Action Coordination Center South Lebanon (UNMACC) has estimated that Israel fired as many as four million submunitions into Lebanon during the conflict of July-August 2006, said Human Rights Watch. For comparison, Coalition forces used about 1.9 million submunitions in Iraq in 2003, and the U.S. Air Force used about 248,000 submunitions in Afghanistan in 2001-2002.
UNMACC has identified 590 cluster munition strike locations, with more being discovered every day, added Human Rights Watch.
The UN has stated that around 90 percent of all cluster munitions were fired into south Lebanon during the last 72 hours of the conflict. Most cluster munitions were delivered by artillery or ground rockets; a limited number appear to have been dropped by aircraft.
The UN has estimated that one million hazardous unexploded submunitions may litter the ground. Demining experts are estimating that the failure rates of Israel’s submunitions were between 30-40 percent.
So far, more than 30,800 submunitions have been cleared and destroyed by UNMACC and its contractors; UNIFIL; and the Lebanese Armed Forces.
Unexploded submunitions are killing or injuring an average of three people daily in Lebanon. As of September 19, at least 15 people had been killed and at least 83 injured by cluster submunitions.
On 24 July 2006, Human Rights Watch was the first to confirm Israel’s use of cluster munitions in Lebanon, when it broke the news that a July 19 attack on the village of Blida left one civilian dead and 12 wounded. Human Rights Watch tracked the use of cluster munitions throughout the conflict, and successfully urged the United States not to ship new cluster munitions to Israel.“We are before a strategic and historic victory," over Israel -- Hizbullah leader Hassan Nasrallah
Monday, 14 August 2006
“We are before a strategic and historic victory … for Lebanon, all Lebanon; the resistance and the nation, all the nation,” declared Hizbullah Secretary-General Hassan Nasrallah. “We emerged from the battle with our head high, and our enemy is the defeated.”
A 5-week war between Israel and Hizbullah, killed 159 Israelis, 114 of them soldiers, and damaged scores of Israeli tanks, bulldozers, and at least a warship, and a helicopter.
In a taped speech on Hezbullah al-Manar TV, 12 hours after a UN brokered ceasefire went into effect, Sayyed Hassan Nasrallah said facing Hizbullah fighters, “the Israeli enemy stands wavering, feeble, weak, coward, defeated and unable to achieve any of its objectives.” He added, in a similar, “Battle, big Arab armies used to be defeated.”
Sayyed Nasrallah attributed massive devastation and destruction inflicted on Lebanon by Israeli Air Force; and the killing of 1,100 Lebanese to Israel’s, “Grudge, brutality, failure and impotence.”
He promised that Hizbullah will initiate the repair of 15,000 residences damaged during the war, and offer to every dislodged family a yearly-rent and aid to buy furniture.
Sayyed Nasrallah ruled out disarming Hizbullah. He recommended, “Building the strong and capable state and the assured resistance is the natural introduction,” before the resistance is merged in the state. He called for steadfastness, solidarity and national unity; and underscored that the Lebanese army and contingent international forces cannot defend Lebanon.Israeli forces appear to have deliberately targeted Lebanese civilians; the U.S. should immediately suspend transfers of arms to Israel -- Human Rights Watch
Thursday, 3 August 2006
Israeli forces have systematically failed to distinguish between combatants and civilians in their military campaign against Hezbullah in Lebanon, Human Rights Watch said in report released today. The pattern of attacks in more than 20 cases investigated by Human Rights Watch researchers in Lebanon indicates that the failures cannot be dismissed as mere accidents and cannot be blamed on wrongful Hezbullah practices. In some cases, these attacks constitute war crimes.
The pattern of attacks shows the Israeli military’s disturbing disregard for the lives of Lebanese civilians, added the report. Our research shows that Israel’s claim that Hezbullah fighters are hiding among civilians does not explain, let alone justify, Israel’s indiscriminate warfare.
The 50-page report, “Fatal Strikes: Israel’s Indiscriminate Attacks Against Civilians in Lebanon,” analyzes almost two dozen cases of Israeli air and artillery attacks on civilian homes and vehicles. Of the 153 dead civilians named in the report, 63 are children. More than 500 people have been killed in Lebanon by Israeli fire since fighting began on July 12, most of them civilians.
“The pattern of attacks shows the Israeli military’s disturbing disregard for the lives of Lebanese civilians,” said Kenneth Roth, executive director of Human Rights Watch. “Our research shows that Israel’s claim that Hezbullah fighters are hiding among civilians does not explain, let alone justify, Israel’s indiscriminate warfare.”
The report is based on extensive interviews with victims and witnesses of attacks, visits to some blast sites, and information obtained from hospitals, humanitarian groups, security forces and government agencies. Human Rights Watch also conducted research in Israel, assessing the weapons used by the Israel Defense Forces (IDF).
Human Rights Watch researchers found numerous cases in which the IDF launched artillery and air attacks with limited or dubious military objectives but excessive civilian cost. In many cases, Israeli forces struck an area with no apparent military target. In some instances, Israeli forces appear to have deliberately targeted civilians.
The Israeli government has blamed Hezbullah for the high civilian casualty toll in Lebanon, insisting that Hezbullah fighters have hidden themselves and their weapons among the civilian population. However, in none of the cases of civilian deaths documented in the report is there evidence to suggest that Hezbullah was operating in or around the area during or prior to the attack.
“Hezbullah fighters must not hide behind civilians – that’s an absolute – but the image that Israel has promoted of such shielding as the cause of so high a civilian death toll is wrong,” Roth stated. “In the many cases of civilian deaths examined by Human Rights Watch, the location of Hezbullah troops and arms had nothing to do with the deaths because there was no Hezbullah around.”
Human Rights Watch also calls on the United States to immediately suspend transfers of arms, ammunition, and other materiel credibly alleged to have been used in violation of international humanitarian law in Lebanon, until these violations cease. Human Rights Watch further asks the Secretary-General of the United Nations to establish an International Commission of Inquiry to investigate reports of such violations, including possible war crimes, and to formulate recommendations with a view to holding accountable those who violated the law. That commission should examine both Israeli attacks in Lebanon and Hezbullah attacks in Israel.Secretary Rice calls for free, fair presidential elections in Lebanon according to UN Security Council Resolution 1559
Monday, 6 March 2006
In Lebanon, "there certainly is a number of issues that need to be taken up," said State Department Acting Spokesman Tom Casey, "and that includes free and fair presidential elections as called for in Security Council Resolution 1559."
In the morning, Secretary of State Condoleezza Rice has met with Lebanese Druze leader Walid Jumblatt and they discussed general developments in Lebanon, added the Spokesman. Part of the purpose of this meeting was to ensure Mr. Jumblatt of ongoing U.S. support for the path of democracy and reform that's been enunciated by the Lebanese Government. The Spokesman noted, the Secretary also did discuss the ways in which the United States and the international community more broadly can support Lebanon and their people as they go about this process.
The Secretary also did underscore the importance of Syrian compliance with UN Security Council resolutions, according to the Spokesman. And as she noted, the Lebanese people have accomplished much over the past year. They've compelled Syrian troops to withdraw from Lebanon and they've held free and fair parliamentary elections.World Bank endorses a $100 million-$700 million new Country Assistance Strategy (CAS) for Lebanon during 2006-2009
Thursday, 15 December 2005
The World Bank Board of Directors has discussed and endorsed today a new Country Assistance Strategy (CAS) for Lebanon . The CAS proposes a concessional lending program which could range from $100 million up to $700 million during 2006-2009 period; depending on Lebanon’s ability to carry out fiscal and structural reforms; enhance the social safety net and poverty alleviation programs; and improve portfolio performance.
The Executive Directors expressed support and good will towards Lebanon. They welcomed the emphasis on growth and social protection. They called on the Government and the Central Bank to enhance the country’s absorptive capacity of foreign finance projects.
The objective of the CAS is to help Lebanon transition from reconstruction to development. The CAS focuses on building efficient and accountable institutions to take Lebanon from the current macro-economic imbalances to fiscal stability; to address the social and environmental implications of this transition; and to lay the foundations for job creation and growth. It underscores development of human capital.The murder of Gebran Tueni is aimed at subjugating Lebanon to Syrian domination -- President Bush
Monday, 12 December 2005
"The murder of Gebran Tueni," said President George W. Bush, "a Lebanese patriot, member of parliament, and publisher of one of Lebanon's leading newspapers, is yet another act of violence aimed at subjugating Lebanon to Syrian domination and silencing the Lebanese press."
In a White House statement, President Bush added, "Mr. Tueni was a well-known opponent of Syrian interference in Lebanon. Like so many other brave Lebanese, Mr. Tueni knew that his courageous stand on behalf of Lebanon's independence and freedom carried great risk. Despite these dangers to his life, he returned to Lebanon a day before his assassination to continue his efforts to promote freedom and democracy in his country."
The President noted, "I strongly condemn the savage attack on Mr. Tueni and extend my condolences to his family and the families of the other innocent victims killed in Lebanon. Syria must comply with United Nations Security Council Resolutions 1559, 1595, and 1636 and end its interference in Lebanon once and for all."Aoun makes a clean sweep in the largely Christian Kesrouan-Jbeil, Metn and Zahle -- Daily Star
Monday, 13 June 2005
Lebanon's Michel Aoun, who only returned home last month after 14 years in exile, was poised for a remarkable political comeback last night according to preliminary results in the third round of parliamentary elections, said the Daily Star. Aoun's arch rival, Druze leader Walid Jumblatt conceded defeat in the most closely contested battle of this year's election.
The third round of voting in the country's first elections free of Syrian 29-year control, held in the Mount Lebanon and Bekaa districts, comes amid renewed international and local fears Syrian intelligence has re-infiltrated Lebanon's Bekaa Valley despite last April's highly publicized Syrian pullout.
Early indications show Aoun made a clean sweep (grabbing 15 seats) in the largely Christian Kesrouan-Jbeil, Metn and Zahle, through a list headed by Elias Skaff. Aoun may well have beaten rival Maronite and key opposition figures Nassib Lahoud and Fares Soueid.
Out of 1.2 million people eligible to vote in the Mount Lebanon and the Eastern Bekaa, preliminary results showed the percentage of vote was 54 percent in Mount Lebanon and 49 percent in the Bekaa, according to the Interior Ministry. The ministry said voter turnout in the majority Christian Kesrouan-Jbeil district, and Mount Lebanon where Aoun was heading a list, reached more than 60 percent, a turnout previously unseen in the area.The murder of an-Nahar Columnist Samir Kassir is a heinous act trying to intimidate the Lebanese people -- Secretary Rice
Wednesday, 2 June 2005
"It's a heinous act," said Secretary of State Condoleezza Rice on the in-car bombing of Lebanon's leading an-Nahar columnist Samir Kassir, 45, who frequently criticized Syria. "Obviously, (it) is someone who's trying to intimidate the Lebanese people as they move through this electoral cycle that, I think, will not happen because the Lebanese people want to build a new democracy."
Secretary Rice added, "He was clearly someone who spoke out against foreign influences in his country. And we don't know who is responsible for it, but I really do hope that (Lebanese Prime Minister) Mr. (Najib) Mikati carries through on his pledge earlier that there will be a full investigation to get to the bottom of it because this — the international community needs to watch very carefully. The Lebanese people are going through a difficult period. They're going through an important period."I return today, as the sun of liberty shines upon us, to rebuild together a new Lebanon -- Michel Aoun
Monday, 9 May 2005
Former Lebanese interim Prime Minister General Michel Aoun, 70, who has spent the past 14 years working against Syrian hegemony over Lebanon from his exile in Paris, and made three visits to the U.S. since 2001, has received an emotional welcome from tens of thousands Lebanese flag waving supporters who made their way down to Martyrs' Square on Saturday to hear his historic speech, said the Daily Star.
Wearing a suit and tie, and peaking from behind a bullet proof screen, flanked by Major Generals Issam Abu Jamra and Edgar Maalouf who returned with him from exile, Aoun said, "I return today, as the sun of liberty shines upon us, to rebuild together a new Lebanon. Minds must be changed and we must get rid of the political feudalism and a sectarian system that dates back to the 19th century."
Lebanon's prince-across-the water after the withdrawal of Syrian forces added, "We no longer want religious sectarianism that kills. We have to fight it along with the political money that has corrupted Lebanon and taken the country to the verge of bankruptcy."Moody's lowers to B3 from B2 Lebanon's country ceilings for long-term foreign currency bonds, bank deposits
Thursday, 24 March 2005
Moody's rating agency has today lowered Lebanon's B2 country ceilings for long-term foreign currency bonds and bank deposits to B3. This reflects the deterioration in Lebanon's political and economic environment since the assassination of former Prime Minister Rafic B. al Hariri, in mid-February 2005. The rating for the government's long-term local currency bonds remains at B3. The outlook on the country ceilings for long-term foreign currency bonds and bank deposits and the outlook for the government's long-term foreign currency bonds has been changed from negative to stable. The outlook for the government's local currency bonds remains negative. The local currency guideline has been lowered from Baa2 to Ba1.
The fall in confidence since Mr. Hariri's death has prompted significant conversions from Lebanese pounds into foreign currencies, leading to a decline in the central bank's foreign currency reserves from around $9.7 billion at the end of January to $8 billion in mid-March.Syrian President: we are going to withdraw our forces in Lebanon completely to the Bekaa valley, then to the Lebanese-Syrian borders
Saturday, 5 March 2005
"Within the framework of al-Taif accord, and in line with 1559," said Syrian President Bashar al-Assad, "We are going to withdraw our forces in Lebanon completely to the Bekaa valley, and then to the Lebanese-Syrian borders," for the first time since 1976.
In a speech to the People's Assembly reported by Syrian Arab News Agency (SANA), President al-Assad added, "Of course this doesn't mean that all our acts in Lebanon were correct. We have to acknowledge clearly and transparently that there have been mistakes made on the Lebanese arena, because we went along with certain details and went too far with some Lebanese at the expense of others. We believed that dealing with the status quo enhances the Syria's role in helping Lebanon to achieve stability. But the reality was not like that. Of course some people have exploited the presence of Syrian forces for narrow material or electoral reasons which led to a number of negative accumulations."Former PM Hariri was a fervent supporter of Lebanese independence -- President Bush
Monday, 14 February 2005
President George W. Bush, "Was shocked and angered to learn of the terrorist attack in Beirut today that murdered former Prime Minister (Rafic) Hariri and killed and injured several others," said a White House statement. "Mr. Hariri was a fervent supporter of Lebanese independence, and worked tirelessly to rebuild a free, independent, and prosperous Lebanon following its brutal civil war and despite its continued foreign occupation."
The statement added, "His murder is an attempt to stifle these efforts to build an independent, sovereign Lebanon free of foreign domination. The people of Lebanon deserve the freedom to choose their leaders free of intimidation, terror, and foreign occupation, in accordance with UN Security Council Resolution 1559."
The statement noted, "The United States will consult with other governments in the region and on the Security Council today about measures that can be taken to punish those responsible for this terrorist attack; to end the use of violence and intimidation against the Lebanese people; and to restore Lebanon's independence, sovereignty, and democracy by freeing it from foreign occupation."PM Hariri resigns, refuses to head a new government
Thursday, 21 October 2004
Prime Minister Rafic Hariri has submitted his written resignation yesterday to President Emile Lahoud after a five-minute meeting the President and the Prime Minister held at the Presidential Palace in Baabda, said the Daily Star. Surprisingly, PM Hariri said he will not head the new government due to internal political differences.
"Facing the challenges, any challenges, can only be done through a unified domestic front that meets the goals of the Lebanese people," said a statement by Mr. Hariri's. "But these objectives have been confronted by known political realities, therefore, following the discussions I held with the President and Speaker, I found that I should resign from government and apologize for not running for the premiership."
The outgoing premier ended his statement in a farewell to his beloved country and its people, and expressed his gratitude to all those with whom he worked during his premiership.Amending the constitution is not a victory for Lebanese democracy -- White House
Friday, 3 September 2004
After the Lebanese Parliament acted today to amend the constitution so that President Emile Lahoud can remain in office beyond the end of his term, White House Press Secretary declared in a written statement, "This was not a victory for Lebanese democracy."
The Spokesman said, "The vote does not reflect the will of the Lebanese people. It was forced upon them by an occupying force. Syria clearly demonstrated its disregard for Lebanon's sovereignty by summoning key Lebanese leaders to Damascus on short notice and decreeing that the Lebanese constitution would be amended. Other Lebanese officials were pressured, threatened, and intimidated."
The Spokesman added, "The Syrian action is in direct contradiction to UNSCR 1559, which was co-sponsored by the United States and France, and approved by the Security Council on September 2, 2004."The U.S strongly supports a new president for Lebanon, according to the constitution -- State
Wednesday, 25 August 2004
"The United States strongly supports a free and fair electoral process in Lebanon," said State Department Deputy Spokesman Adam Ereli. "That means one that is conducted according to the established Lebanese constitution. That constitution provides for a new president every six years, selected by parliament."
The spokesman added, "The election of a president is a decision for the Lebanese people alone to make, consistent with their established constitution. It is our view that no outside country [neither Syria nor the U.S.] should interfere in this process. But, as a matter of policy, the United States does not take a position on individual candidates."Ambassador Feltman calls for a sovereign, independent, and democratic Lebanon, free of Syrian, Iranian forces
Thursday, 22 July 2004
"I hope that during my tenure in the U.S. Embassy in Beirut," declared new U.S. Ambassador to Lebanon Jeffrey D. Feltman, "We will be a witness to, and partner in, Lebanon's flowering as a sovereign, independent, and democratic country, free of Syrian and Iranian forces."
In his remarks at the swearing-in ceremony, Ambassador Feltman said, "I hope to continue our work to increase the mutually beneficial security cooperation our two countries have developed in recent years."
The 23rd American ambassador to Lebanon since diplomatic relations were established between the two countries during World War II, added, "We have had a diplomatic presence – consuls and ministers – in Beirut for more than twice that period, since the early 19th century."
Ambassador Feltman has served in Tunis, Tunisia and Tel Aviv, Israel. He was Acting Consul General in Jerusalem. Most recently, he spent three months in Irbil, Iraq to re-integrate Kurdish areas and institutions.
Before administering the oath of office, Under Secretary of State Marc Grossman stated, "Lebanon's nightmare is more than a decade behind us. Lebanon's press and its intellectual life are making a comeback. Its institutions of higher education are reviving. Lebanon's entrepreneurial energies, never totally extinguished, are again generating economic dynamism. Beirut is a city reborn; Lebanon is a land with a new lease on life.."
However, Under Secretary Grossman noted, "It's time for the Lebanese government to counteract these [terrorist] groups [active from South Lebanon]."Lebanese authorities, Hizbullah have a day to day coordination; it contributes to the defense of the country -- Ambassador Abboud
Wednesday, 2 June 2004
“There is a day to day coordination [between the Lebanese authorities and Hizbullah],” declared Lebanese Ambassador to the U.S. Dr. Farid Abboud. “Hizbullah has a basic linkage, interaction and sympathy with the state [of Lebanon].”
In his remarks at the Center for Policy Analysis on Palestine, Ambassador Abboud said that Lebanese soldiers at one instance carried out the remains of Hizbullah fighters when they arrived at Beirut International Airport and made that point of linkage.
Otherwise, Ambassador Abboud added that there is a distance and a legal difference between the state and the party that forgive the state from carrying certain responsibilities and this is, “An ideal set up and it is going to continue as long as there is a threat of aggression from the Israelis,” he noted.
Ambassador Abboud refused the State Department’s classification of Hizbullah as a terrorist organization, and affirmed that Hizbullah is a legitimate Lebanese resistance movement that is on the same wave length and cooperating with the Lebanese government as well as contributing to the defense of the country.
The Ambassador pointed out that “Israelis are killing civilians in Lebanon … we can prove that the Israelis have deliberately attacked civilian targets in Lebanon during their occupation [1981].” Former Israeli Chief of Staff Rafael Eitan and others said that part of their strategy was to attack civilians as a retaliatory practice.
Ambassador Abboud refused the Bush Administration theory that democratization will lead to peace in the Middle East. He stated, “It is the reverse, peace would insure that democracy would move forward.”
However, the Ambassador told members of Washington Association of Arab Journalists, “Our influence in this issue of [Arab Israeli conflict] is of course minimal as you might have guessed, like that of most Arabs.”
Ambassador Abboud underscored, “You don’t do surgery [in Iraq] with a sledge hammer.” However, he noted that the provisional leaders of Iraq are represented at the Arab League so, “We are beyond that [they need Lebanon’s recognition].”PM Hariri's entire list loses municipal elections in his hometown, Sidon
Tuesday, 25 May 2004
After his unconvincing victory over newcomers in Beirut's municipal elections, Lebanese Prime Minister Rafic Hariri seemed more "contained" than ever with the defeat on Sunday of his entire list in his hometown, said the Daily Star. The camp opposed to Hariri, led by Abdul Rahman Bizri, won the elections in Sidon.
Amal's substantial triumph in the south helped preserve Lebanese Speaker Nabih Berri's popular status, sources said. The opposition was defeated in Jezzine in favor of the list supported by MP Samir Azar, a member of Berri's parliamentary bloc. Hizbullah's dominated in the liberated areas of the south.
Zahle MP Elie Skaff scored an overwhelming victory against other traditional political figures, including the Hrawi and the Maalouf families.
In the Western Bekaa, traditional political figures, such as Lebanese Deputy Speaker Elie Ferzli were also defeated, while in Baalbek, the political authority shifted from Amal to Hizbullah.World Links program is launched in Lebanon
Wednesday, 12 May 2004
Under the joint sponsorship of the Ministry of Education in Lebanon and the Hariri Foundation, the World Links Arab Region (WLAR) has established the World Links program in Lebanon.
As a 1977 pilot project by the World Bank to help developing countries bridge the, “digital divide,” World Links provides Internet connectivity, computer labs, and training in the use of technology for enhanced learning. Through the World Links program, students in developing countries conduct join education projects via the Internet with students in industrialized countries.Hariri Foundation President Bizri calls upon UNCHR to sponsor a regional conference on education
Wednesday, 24 March 2004
Hariri Foundation President Rafic A. Bizri has called upon the United Nations Commission on Human Rights (UNCHR) to sponsor a regional conference on education that will focus on development as an internationally recognized human right.
In his remarks today before the 60th session of the UN Commission on Human Rights at Palais de Nations, Geneva, Switzerland, President Bizri said the Hariri Foundation has established itself as the largest privately funded student assistance program in the Middle East by helping to finance the education of over 32,000 Lebanese students at home and abroad at all levels of education. To achieve this monumental undertaking the Foundation has expended over $200,000,000.
He added, at home in Lebanon, the Hariri Foundation maintains a system of schools, universities, clinics, sports facilities, and cultural centers all designed to nurture the formation of healthy, educated individuals, reflecting our firm belief that only by developing its human resources can Lebanon develop as a nation. Only through education will all individuals possess the necessary knowledge and skills to prosper in a rapidly evolving global economy where each day brings new changes and new challenges.Secretary Abraham mostly appreciates receiving the National Order of the Cedars
On behalf of the President of Lebanon Emile Lahoud, Lebanese Ambassador to the U.S. Dr. Farid Abboud has awarded the National Order of the Cedars to U.S. Secretary of Energy Spencer Abraham.
The official ceremony took place at the residence of the Lebanese Ambassador. National Security Advisor Dr. Condoleeza Rice, Foreign Minister of Jordan Dr. Marwan Mouasher, French Ambassador Jean-David Levitte, Egyptian Ambassador Nabil Fahmi and Quatari Ambassador Bader Omar al-Dafa were among distinguished guests, according to Arab-American Affairs magazine.
“We are celebrating today the achievements of a remarkable son of Lebanon,” said Ambassador Abboud. Secretary Abraham responded, “In my many years in public life, I have received my share of awards and plaques and honors … none of them could be so personal and mean as much to me as this one you have given me tonight.”
Ambassador Abboud added, “We wondered what links existed between those [Lebanese] who excelled in the political realm such as Spencer Abraham [Donna Shalala] or the Sununus, the car industry such as Jacque Nasser at Ford or Carlos Ghossen at Nissan, those who did so in the oil industry such as Ray Irani at Oxy, or in engineering such as Joseph Jacobs, or in acting as and philanthropy as Danny Thomas … or in design clothing as Joseph Abboud, or in medicine such as Michael Debakey.”
Secretary Abraham said, “Few things in my career have given me satisfaction as seeing Arab-Americans all over this country participating as full members in the grand American Experience: Dina Powell, Mitch Daniels, Elias Zerhouni, General John Abizaid and Bob Joseph.”Lebanon's deficit reduction slows down, privatization program has been delayed -- IMF
Friday, 12 December 2003
"Over the last 10 years, Lebanon has made remarkable strides to rebuild itself into an open, service-oriented economy," declared Deputy Managing Director of the International Monetary Fund (IMF) Agustín Carstens in a statement issued today in Beirut, Lebanon. "It has successfully re-established itself as a major banking center, tourist destination, and as a provider of higher education and health services for the region."
Over the same period, Lebanon has, however, also witnessed a considerable buildup of public debt. In the event, high budget deficits and high interest rates have over time dampened growth and are preventing the economy from realizing its full potential. It is widely recognized that the Government debt burden poses risks for the economy. Because most of the debt is held domestically, Lebanon has been shielded in part from the financial pressures experienced by other emerging market economies. However, the ability of the government to place its debt with investors depends on continued confidence.
At the Paris II conference in November 2002, Lebanon presented a strategy to address the debt overhang. This strategy envisioned a steady reduction of the debt-to-GDP ratio through a combination of privatization and budget deficit reduction, supported by soft financing from external sources and from domestic banks. Most of the financing has come through, but the pace of deficit reduction is slowing down and the privatization program has been delayed.
Mr. Carstens encouraged the authorities to take advantage of the improved confidence that followed Paris II, and the favorable global interest rate environment to strengthen the reform efforts and restore the basis for solid economic growth and job creation. Considerable deficit reduction has already been achieved, but not enough to put the debt-to-GDP ratio on a downward path. A key signal of the country's commitment to the Paris II strategy would be the adoption of a 2004 budget which achieves a significant increase in the primary surplus. This would require additional expenditure tightening and new revenue measures. On the revenue front, he commended the authorities for the measures already taken to modernize the tax system, most notably with the introduction of the VAT. Additional revenue measures are needed over the medium term, including an expansion of the tax base. On the expenditure side, the authorities should find ways to generate additional savings while protecting priority social sectors. This will need to be achieved by rationalizing government spending and reforming loss-making public enterprises, in particular Electricité du Liban.
Mr. Carstens underscored the importance of strengthening budgetary, monetary, and financial supervisory institutions. The required actions could take the form of legislation that sets clear rules of accountability and transparency, along with a framework for medium-term economic policy planning. On the fiscal side, this should include limits on deficit financing. He called for enhancing coordination between the central bank and the Ministry of Finanace.Lebanon's deficit drops to 37% of expenditure, balance of payments shifts to a surplus and financial reserves reach $12 million -- Moody's
Wednesday, 10 December 2003
The mostly grim financial news for Lebanon includes some positive signs, said Moody's rating agency, including the movement of some Persian Gulf investment into Lebanon, resulting in the balance of payments shifting from a deficit to a surplus, and also an increase in tourism from neighboring Arab states. Moreover, financial reserves reached $12.1 million in mid-October 2003 (equivalent to 22 months of imports) against $4.1 million a year earlier.
The September-to-September data showed a deficit totaling 37.2% of expenditure against 39.7% last year. The slight decrease in the deficit has been caused by the full-year effect of the introduction of a value-added tax, the adjoining increase in fiscal revenues, and a reduction in the debt-servicing cost following a cut in interest rate after the Paris II conference.
In its annual report on Lebanon, Moody's says the country's B2 speculative- grade credit rating for foreign currency debt and bank deposits, and its B3 domestic debt rating, are based on significant public sector debt and ongoing budget deficits. The rating outlook is negative. Lebanon's debt was equivalent to 160.7% of its gross domestic product (GDP) at the end of last year, and the country also has structurally high budget deficits, placing constraints on the private sector.Hariri’s Saudi Oger acquires 11 percent of Arab Bank
Friday, 28 November 2003
Saudi Oger Ltd., a company owned by Lebanese Prime Minister Rafic Hariri, has acquired 11 percent of Arab Bank plc. for about $375 million, bankers and brokers said Thursday, according to the Daily Star. Arab Bank is one of the region’s largest banks with assets of more than $23.7 billion and 378 branches in 27 countries.
The sale was concluded last week with the blessing of Jordanian authorities after negotiations between Saudi Oger and a representative of the heirs of one of the bank’s founders, Palestinian-Jordanian billionaire Khaled Shuman, sources said.
Saudi Oger will retain most of the acquired stock and sell the rest to social security funds in Saudi Arabia and Jordan, the sources added.
A leading banker told The Daily Star that Hariri’s group became interested in acquiring a bigger stake in the Arab Bank when an Arab-American financier signed a memorandum of understanding with the son of Khaled Shuman to buy 11 percent of the bank. “When the deal with the financier fell through, Oger decided to move in and buy 11 percent of the bank,” the banker said.
The Arab Bank was founded in 1930 in Jerusalem, Palestine. It later became a listed company and moved to Amman, Jordan in 1948. Today, the bank is owned by nearly 4,000 shareholders, mostly Arabs.
Saudi Oger is based in Riyadh, Saudi Arabia and was founded by Hariri in 1978. It has grown into a multinational company with branches in the Middle East, Europe and the United States, and is estimated to be worth more than $5 billion.Hizbullah coordinates with the Lebanese authorities over its presence in locations near the borders (with Israel) -- Ambassador Abboud
Wednesday, 5 November 2003
“Hizbullah is present in locations near the borders [with Israel],” declared Lebanese Ambassador to the U.S. Dr. Farid Abboud, “and there is a coordination concerning them with the state of Lebanon.” Ambassador Abboud affirmed that the main task of Hizbullah is, “resistance to Israel,” as it continues to occupy Shebaa Farms.
In his remarks at al-Hewar Center today, Ambassador Abboud said that Lebanon took a political decision to respect the “blue line” with Israel, but added that this is the line of Israeli withdrawal while the borders between Lebanon and Israel will be decided in a final agreement. He noted that Lebanon initially made reservations on mapping the line in three areas.
The ambassador predicted that 400 Palestinians, and all Lebanese, Syrians and Jordanians would be released from Israeli jails as a result of an expected prisoners exchange agreement between Hizbullah and Israel. He underscored that the release of such a big number of Arab prisoners would be, “a victory for us as Lebanese and we would be proud of it.” However, the remaining problems relate to names of Arab prisoners and the fate of Israeli pilot Ron Arad whose aircraft was downed by the Syrians. He pointed out that his case is, “complicated.”
Responding to a question on Syrian Accountability Act & Lebanese Sovereignty Act passed lately by the House of Representatives, Ambassador Abboud stated, “The Syrian intervention ... the Syrian element is a stabilizing element ... and Syria's participation in stopping the Lebanese war was not against U.S. positions at all, and according to an Arab and international accord.” In addition, “the U.S. recognizes al-Tayef Agreement [to end the Lebanese war in 1989] ... and asks Syria to suppress Hizbullah,” he observed. The ambassador emphasized that U.S. forces are present in 111 countries, and questioned whether the independence of their governments is debatable.
Lebanon's, “economic situation is difficult,” affirmed Ambassador Abboud, and foreign debt has reached $34 billion and constitutes 178% of GNP. He predicted that this debt would rise as Lebanon continues to rebuild.
The ambassador stressed the right of return for 395,000 Palestinians registered with the UNRWA in Lebanon and comprise 10% of the residents of Lebanon.
“We cant accept the occupation by a Western country of an Arab country,” signaled Ambassador Abboud to oppose U.S. occupation of Iraq. He warned that, "present acts ... may endanger Iraq's cohesiveness and unity.”World Bank approves a $5 million loan to complete the improvement of Lebanon's Land Survey, Registration system
Tuesday, 26 August 2003
The World Bank's Board of Directors has approved today a $5.31 million loan to the Republic of Lebanon to complete the improvement of its Land Survey and Registration system. The supplemental loan will be used to finance the completion of the computerized land rights database and the reconstruction, archiving, and computerization of destroyed, ruined and newly created maps.
The original Revenue Enhancement and Fiscal Management Project was designed to rehabilitate and modernize the land registration system. It was meant to reconstruct, archive and computerize the destroyed or ruined land maps, produce new maps, train the personnel to improve their skills and establish a computerized and user-friendly land rights and graphical information database. While the project was ongoing, additional quantities of title registers and mapped parcels not anticipated by the original project appraisal were discovered. Therefore, in order to successfully complete the project, additional funds were needed.
The Bank and the Lebanese authorities have jointly concluded that a supplemental loan is the best, most effective and timely way to finance the additional costs necessary to complete improvement of the Land Survey and Registration System. The funds will cover additional mapping, surveying and titling work as well as finance two small consultancies that will address specific issues associated with prompt completion of the system. These additional activities, will be carried out over two years from October 2003 to December 2005 by the Directorate of Land Registration.
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