Hezbollah’s Views Towards Loan Agreement with World Bank

Translated By Staff

Lebanese MP Hassan Fadlallah said that the position of his Loyalty to the Resistance Bloc helped secure a USD 10 million loan from the World Bank. According to Fadlallah, this shows that scrutiny yields results and raising one’s voice pays off.

During discussions about the agreement within the framework of the joint parliamentary committees, Fadlallah explained that everyone wanted the loan “but in accordance with priorities set by the state and based on our national controls. The interest of the people has to be advanced, and we have the responsibility to scrutinize the law and discuss it to improve and correct performance as well as fortify the project.”

"What the government presented is a positive step. It turns out that there is a possibility to take our basic notes into account, but this needs to be completed because we are talking about a loan that will increase public debt. Our past experiences with debt and waste created the country’s current crisis. We must all avoid any blunders in order to protect public money," Fadlallah added.

The Hezbollah MP further pointed out that "the bloc had previously submitted a set of constitutional, legal, and practical remarks in order to restructure the bill and outline how the loan should be administered. It made clear that the problem was in the formula regarding how the loan was to be used, which is public money that the Lebanese people will pay later."

"We don’t want to sell people illusions; to tell them that this loan will solve their problems and then later find out that many of  them will receive nothing or something that can’t meet their necessary needs. Experiences have shown that this method will waste part of this money. If the required modifications are not taken, another part of the money will be wasted and the goal will not be achieved."

The lawmaker noted that "in addition to the many gaps in the project, there are two fundamental problems, namely, loan management and the preparation of beneficiary lists."

In parallel, he emphasized that the government committed to some of the bloc’s notes, including limiting the useless spending that amounted to USD 18 million of public money, and added that there are other remarks that still need to be answered.

Fadlallah also suggested that there should be a formula obliging the government to adhere to its commitments. "We know that the government does not adhere to the recommendations. There are even laws that are not implemented yet."

Responding to claims that amending the agreement is difficult, Hezbollah’s MP underscored that there is still plenty of room for negotiations. 

“The loan from the World Bank dedicated to roads and allocating USD 10 million for agriculture has already been modified, as well as another loan to the Ministry of Health. Therefore, the government can negotiate with the World Bank while databases are being prepared and correct them. "

Fadlallah concluded by saying, “the agreement states that new jobs should be created within state bodies, and there are administrative units determined by the loan. So is it possible to establish administrative bodies from the loan to become a fait accompli and to demand the employment of workers later?”

"We have employees in the administration, why not take advantage of them instead of wasting more money and overburdening the treasury?"