Lebanon’s Parliament Passes $246M World Bank Social Safety Loan

By Staff, Agencies

Lebanon’s Parliament Friday passed a law on a $246 million World Bank loan that will provide a social safety net for thousands of the neediest families as Lebanon grapples with a crisis that has sent more than half the population under the poverty line.

The World Bank loan will fund a direct cash assistance program for around 150,000 vulnerable families and will also be used to fund the government's battle against the pandemic.

Parliament convened for a general session at the UNESCO Palace to discuss a three-item agenda, with crucial and reformist laws glaringly missing at a critical time for Lebanon.

In addition to the $246 million loan, another law granting $5.5 million from a different, existing World Bank loan to small and medium enterprises was also on the agenda and was passed by the MPs.

A controversial bill for the funding of Electricite du Liban was referred to the Joint Committee as Lebanon faces the threat of a complete blackout in mere weeks in the absence of funds to generate electricity.

The bill was submitted by Free Patriotic Movement MPs that calls for providing EDL with LL 1.5 trillion for 2021 but was not included on Friday's agenda.

However as the electricity sector is regarded as one of the most corrupt, while bleeding around $2 billion annually from the state budget, many MPs are criticizing the bill as it would mean further depletion of the Central Bank's dwindling foreign currency reserves and would provide assistance to a sector that is in dire need of reform.

An urgent bill proposed by Amal Movement MP Ali Hasan Khalil aimed at providing all Army officers and security forces in the country an additional LL1 million every month for six months in light of the economic crisis was tabled for discussion by Parliament Speaker Nabih Berri. Khalil later told reporters that his proposal was criticized by lawmakers and announced that he withdrew his draft law.

MPs gathered at the UNESCO Palace in Beirut, where general sessions have been held since the pandemic began, to guarantee physical distancing.

Meanwhile, multiple protests were being staged ahead of the session including parents of Lebanese students studying abroad who are still unable to transfer them money despite a law being passed months ago to allow it.

Security forces were also present at the scene and blocked some roads that led to where the lawmakers had gathered.