Mikati: New government priority will be taking care of people needs ...

3^min

Prime Minister Najib Mikati asserted on Monday that the new government’s priority will be taking care of people's needs and addressing their urgent affairs.

Mikati’s comments were made from the Grand Serail whereby he noted that the newly formed Cabinet will kick start its work as one team that will serve all Lebanese.

Mikati told cabinet that it would take will, determination and a plan to achieve the hopes of the population.

"It is true that we don't have a magic wand. The situation is very difficult," information minister George Kordahi quoted the billionaire-turned-politician.

Mikati pledged to work hard to resolve shortages of fuel and medicine, supplies of which have dried up as the import-dependent nation's hard currency reserves have run out.

Lebanese hope the new administration will finally plot a path out of a crisis that has sunk the currency by some 90% since late 2019 and forced three quarters of the population into poverty.

Mikati has previously said resuming IMF talks would be a priority. On Friday, he said divisive politics must be put to one side and that he could not go to IMF talks if he faces opposition at home.

In a boost to the government, the finance ministry said Lebanon would receive a total of $1.135 billion in IMF Special Drawing Rights (SDRs), more than the $860 million's worth that had been expected as part an IMF general allocation.

In addition to the $860 million from 2021, the sum includes $275 million dating from 2009, the ministry said, adding the sum would be deposited with the central bank on September 16.

IMF talks broke down last summer with politicians and banks disputing the scale of vast losses mapped out by a government financial recovery plan which the Fund endorsed. Aoun urged the government to include that financial recovery plan in its policy program, as well as reforms set out by a French road map last year.

The previous government failed to implement structural reforms which donors have been urging for years, including measures to address state corruption and waste at the root of the crisis.

LBCI/REUTERS

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