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Financing municipal elections in Lebanon: Options, obstacles, and considerations
Lebanon Economy
05-04-2023 | 07:27
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Financing municipal elections in Lebanon: Options, obstacles, and considerations
Lebanon is just one month away from the first stage of the upcoming municipal elections. Still, it is filled with holidays such as Easter and Eid.
Therefore, it is necessary to decide on the financing of the elections quickly.
In this context, sources in the Ministry of Finance stated that Caretaker Minister of Finance Youssef Khalil is studying several options for financing, provided that it does not affect the mandatory reserve.
One of these options may include some donations. Still, the sources refused to impose a deadline on the finance minister to make a decision for fear of political obstacles and difficulties that may arise.
It should be noted that any financing in this context requires the approval of the finance minister and Caretaker Prime Minister Najib Mikati.
According to available information, Caretaker Interior Minister Bassam L-Mawlawi is continuing discussions with the Ministry of Finance and Banque Du Liban on financing the elections.
The BDL offered al-Mawlawi to provide Lebanese pounds in exchange for dollars secured by the central bank through the Sayrafa platform.
However, the interior minister stated that he does not even have enough Lebanese pounds, the budget reserve does not contain any funds, and any treasury advance also requires a law to be passed by the Parliament, which is not convening in legislative sessions as it is considered an electoral body by some parliamentary blocs and members.
Sources in the Presidency of the Council of Ministers said they would definitely take place if the Parliament did not meet and decided to postpone the elections.
The decision regarding the financing will be made during a session of the caretaker government, which will be held soon.
They also mentioned the option of using International Monetary Fund Special Drawing Rights (SDRs) as a last resort. Still, they also talked about donations in this context.
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