Mikati: Halting Collapse, Starting Recovery

In a recent announcement, Lebanon’s Caretaker Prime Minister Najib Mikati conveyed that the country has successfully arrested its financial downturn and is now on the path to significant recovery. Mikati highlighted the country’s financial stability, mentioning that Lebanon’s central bank, Account 36, holds over 100,000 billion Lebanese pounds and 1 billion dollars, which includes 150 million in new U.S. dollars and 850 million in ‘lollars’ (Lebanese dollars).

Addressing the criticism from some parliament members regarding tax increases and fees, Mikati described their claims as exaggerated and charged with populism, stating that the tax hike is actually quite minimal. He urged the members of parliament to elect a president to ease the pressure on the government.

Mikati emphasized the importance of passing the state budget within its constitutional deadline as a key element of the government’s plan to ensure stability. He mentioned that the central bank is exploring various options to unify the multiple exchange rates for the dollar and mitigate any negative impacts. He clarified that there are no plans to peg the exchange rate, acknowledging the high costs incurred from its previous pegging to the U.S. dollar.

Underlining the context of Lebanon’s current challenges, Mikati admitted that while the budget isn’t ideal for normal conditions, it is appropriate given Lebanon’s present circumstances. He concluded by refuting claims that the government has relinquished national decision-making to certain political factions.