Lebanon Donor Conference Raises $11 Bln to Boost Ailing Economy

Local Editor

International donors pledged $11 billion in low-interest loans and aid for Lebanon at a conference in Paris on Friday to try to avert an economic crisis in a country hard hit by the fallout from the war on Syrian.

Lebanon's growth has plummeted due to political instability, with the effect compounded by the Syrian conflict which has sent a million refugees across the border - equivalent to a quarter of the Lebanese population before the conflict.

Some 40 countries sent representatives to the CEDRE conference in Paris along with officials from the World Bank and the International Monetary Fund where an aid package, made up 90 percent of low-interest loans, was agreed.

Praising the "exceptional generosity of the Lebanese people" with regard to Syrian refugees French President Emmanuel Macron said the world needed to show "full solidarity" with Lebanon.

The support was all the more critical given that the continued fighting in Syria "makes the imminent return of Syrian refugees impossible," he added.

Among the biggest donors was the World Bank which pledged more than $4 billion over five years, while France opened the conference with a promise of 550 million euros.

Saudi Arabia said it would renew a $1-billion line of credit to Beirut which had been agreed in the past but never used, Lebanese officials said.

"In a Middle East shaken by crises, wounded by civil wars, Lebanon remains a model of pluralism, tolerance and openness which we need," French Foreign Minister Jean-Yves Le Drian said.

"But Lebanon is not an island. It's borne the full force of regional tensions and the Syria crisis," he said, adding that it was also grappling with the threat of terrorism.

An economic adviser to Lebanese Prime Minister Saad Hariri, who was at the conference, estimated the total amount pledged in loans and grants at $2.6 billion by midday.

The Paris conference was aimed at giving Lebanon a boost as it prepares for its first general elections in almost a decade in May.

Lebanon will for its part sign up to a string of reforms including tougher measures to fight corruption.

Source: News Agencies, Edited by website team