The German ambassador to Lebanon said today, Friday, that several private companies will present a comprehensive proposal next week to develop the Beirut port and the surrounding areas, which were destroyed by a massive explosion last August.
The statement came after "Reuters" (Reuters) quoted two sources as saying that Germany will present to the Lebanese authorities next week a plan costing billions of dollars.
To rebuild the Beirut port, as part of efforts to urge the country's politicians to form a government capable of avoiding an economic collapse.
Ambassador Andreas Kindle stressed that the proposal is not submitted by the German government, adding that the Lebanese authorities can only restore confidence and attract support from investors through the implementation of effective reforms.
The agency quoted the two sources familiar with the plan as saying that Germany and France are seeking to lead the reconstruction efforts, and they said that Berlin will present on April 7 a proposal that the European Investment Bank agreed to help in financing, according to which the area will be evacuated and the facilities rebuilt.
One of the sources estimated that the financing of the European Investment Bank would range between 2 billion and 3 billion euros, while a senior Lebanese official confirmed that Germany would present a comprehensive proposal for the reconstruction of the port.
The two sources said that the political elite in Lebanon first needs to agree to form a new government to reform the budget and eradicate corruption, a condition that donors, including the International Monetary Fund, insist on implementing before releasing billions of dollars in aid.
Reserves run out
On the other hand, the Finance Minister of the caretaker government in Lebanon, Ghazi Wazni, said that the money allocated to finance basic imports will run out by the end of May, and that the delay in launching a plan to reduce subsidies costs the country 500 million dollars a month.
As Lebanon’s economy collapses, Wazni said yesterday that the Central Bank had asked the caretaker government to decide how to gradually raise subsidies to rationalize the use of the remaining foreign exchange reserves.
Wazni added that the subsidy plan reduces the list of subsidized foodstuffs from 300 commodities to 100, and reduces fuel and medicine subsidies, with the introduction of food cards for 800,000 poor families, with the aim of halving the annual spending on the $ 6 billion subsidy.
He pointed out that the comprehensive support plan is subject to parliamentary approval, as it must approve the funding for the cards, and said that the caretaker prime minister, on his part, wants the introduction of the cards to be linked to the cancellation of subsidies, explaining practical details that are likely to take time.
Cash reserves
The minister explained that foreign exchange reserves are stable at about $ 15.8 billion, which means that the support will remain for two months at the best estimate before reaching the mandatory reserve level, which is what local banks deposit in foreign currency at the Central Bank, which my weight estimates at about $ 15 billion.
Comments about an imminent end to subsidies sparked panic buying and fears of shortages in an import-dependent country.
The Lebanese currency has lost most of its value since late 2019, throwing more than half of its citizens into poverty as prices rise.
But politicians have yet to agree on a rescue plan or a new government since the government resigned in August over the Beirut port bombing, which killed 200 people.