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Diab calls for an emergency ministerial meeting at Grand Serail
Lebanon News
2021-08-12 | 05:06
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Diab calls for an emergency ministerial meeting at Grand Serail
Caretaker Prime Minister Hassan Diab sent on Thursday a letter to Caretaker Finance Minister Ghazi Wazni requesting him to inform Banque Du Liban Governor Riyad Salameh that his decision to lift fuel subsidies violates the law issued by Parliament regarding the financing card, and contradicts the government's policy of rationalizing subsidies.
The letter reads: “Since the government has repeatedly emphasized the necessity of rationalizing subsidies (not lifting them), in parallel with approving the financing card that would help citizens bear the cost of rationalization.
Whereas the Parliament has recently approved the government’s financing card project and adopted its policy of rationalizing subsidies in parallel with approving the financing card.
In implementation of the government's policy enshrined under the aforementioned law, any decision to lift subsidies now and immediately constitutes a clear violation of the government’s policy and the provisions of this law.
Therefore, we ask you to notify the Banque du Liban, through the government commissioner, of the contents of this letter to act accordingly and take the necessary action as quickly as possible.
Diab called for an emergency ministerial meeting in the afternoon at the Grand Serail to deliberate on the central bank governor’s move.
Prime Minister Diab issued the following statement:
I have long resisted the decision to lift subsidies, and I am still against this decision; I have also been subject to many accusations by political forces calling for subsidies to be lifted, for they live in their ivory towers and do not know anything about the suffering of the Lebanese people.
The Governor of the Banque du Liban has taken the decision to lift subsidies, which is against the law, and also does not take into account the reality of the deep living and social crisis.
I was and still am against lifting subsidies before giving people compensation, even partially, for rationalizing subsidies. Two days ago, we finalized the mechanism for implementing the financing card, and the implementation will begin soon. The decision of lifting subsidies could have waited until the financing card’s operationalization and the rationalization of subsidies in accordance with to the government's plan.
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