In the throes of economic collapse, this subsidy will provide much-needed relief to eligible families in Middle Eastern countries.
The Lebanese parliament approved on Wednesday to provide cash payments to financially troubled families, which will cost US$556 a year and may cancel a US$6 billion subsidy program for basic commodities.
A source close to the government told Reuters that each family eligible for the plan will receive about $93 a month.
This Middle Eastern country is in the throes of a rapidly developing financial crisis, which has plunged more than half of the population into poverty, making it difficult for families to afford basic commodities.
Since October 2019, Lebanon’s currency has depreciated by more than 90%.
Frustration and anger continued to spread to the streets, and anti-government protests and demonstrations swept the country. Critics claim that the government has failed to provide a reliable financial solution that could release billions of dollars in international aid.
The World Bank warned earlier this month that Lebanon’s economic crisis could be One of the top three worst in the world It has been seen in the past 150 years.
Due to insufficient funds from the central bank, it was unable to fund the plan, and the shortage of key items including medicines and fuel has become more serious in the past month.
The Lebanese Ministry of Energy dealt with a Hit hard The price of fuel has been increased by more than 35% on Tuesday.
Rising prices will put greater pressure on Lebanese consumers at gas stations and elsewhere. In recent days, as frustration has intensified, the long lines of fuel have become violent.
Some hospitals are postponing elective surgery to save important medical supplies such as anesthetics.
foreign exchange reserves
The Central Bank of Lebanon has asked the government to approve the use of mandatory reserves. The request indicated that the bank’s foreign exchange reserves were almost used up.
Mandatory reserves-hard currency deposits deposited by local lenders in the central bank-are part of customer deposits and are usually not used unless required by special circumstances.
The Lebanese Parliament directed the government to approve special credits to fund the cash subsidy program.
A lawmaker told Reuters that the move indicated that it would be funded through the central bank’s mandatory reserves.
The United Nations warned that, given the lack of government services and financial assistance to help struggling Lebanese, the removal of subsidies could lead to a “social disaster”.