Will the country face a bread crisis soon?

Lebanon Economy
2023-01-21 | 09:07
High views
Share
LBCI
Share
LBCI
Whatsapp
facebook
Twitter
Messenger
telegram
telegram
print
Will the country face a bread crisis soon?
Whatsapp
facebook
Twitter
Messenger
telegram
telegram
print
2min
Will the country face a bread crisis soon?

Is a bread crisis near?

The question is posed in light of information regarding wheat availability, but for a time frame that does not extend until the end of February, which is the anticipated arrival date of the first batch of this material purchased with a loan from the World Bank.

Wheat for bread will be secured over an eight to ten month period with the implementation of the emergency response initiative to secure wheat supplies, and the first batch of this wheat will arrive at the end of next February.
 
The World Bank will then oversee and fund this operation with a $150 million loan to buy wheat and an account at the Banque du Liban has been opened to begin disbursing this money.
 
Before the President's term expired, the Parliament ratified in August 2022 the loan arrangement given by the World Bank during one of its legislative sessions.
 
According to what knowledgeable sources confirmed to LBCI, it is a long-term soft loan that will be repaid over 18 years by the Lebanese state in dollars, following the signing of the agreement with the International Monetary Fund and Lebanon's recovery.
 
The World Bank will rationalize the wheat sector over the course of eight to ten months by monitoring and tightening control over distribution activities, with a follow up from all security apparatuses to ensure that flour reaches bakeries.
 
Meanwhile, item No. 6 was added to the Cabinet's agenda in order to provide for consumption needs between the arrival of the wheat ships at the end of the next month and the start of the World Bank loan's benefits.
 
It has not yet been signed or accepted, but this item includes the Ministry of Economy's request to obtain an additional $8 million in credit to fund the purchase of wheat meant for the production of Arabic bread from the SDR.
 
In this regard, sources cautioned against experiencing a bread crisis for around two weeks in the event that this item's approval and opening of its credits were delayed.
 
In terms of the cost of bread, the sources indicated that its price is anticipated to increase early next week in the event that the exchange rate of the dollar does not decline. This is because the cost of the components of bread rises in tandem with the price of the dollar in the black market.
 

Breaking Headlines

Lebanon News

Lebanon Economy

News Bulletin Reports

Bread

Crisis

Lebanon

LBCI Next
What is Parliament role in solving banking sector crisis?
Lebanon's tourism witnessed positive peak in 2022
LBCI Previous
Download now the LBCI mobile app
To see the latest news, the latest daily programs in Lebanon and the world
Google Play
App Store