The World Bank approved a USD 246 million loan to Lebanon to provide emergency cash assistance to nearly 800,000 Lebanese reeling under the country's compounded economic and health crises.
The World Bank said in a statement late Tuesday the loan would also support the development of a national social safety net in Lebanon, which was struggling with a financial crisis before the pandemic struck, driving nearly half the population of the small country of 6 million into poverty. Over 1 million refugees from Syria live in Lebanon.
The economic crisis has led to a projected 19.2 per cent decline in gross domestic product, triple-digit inflation and is pushing 1.7 million people below the poverty line. Some 22 per cent of the population is expected to fall into extreme poverty.
International donors have been dispensing direct humanitarian assistance to Lebanon. But in the absence of major structural reforms, talks with the International Monetary Fund that began last summer have failed to produce a rescue package for the cash-strapped government.
The deepening crisis has depleted foreign reserves in the import-dependent country and sent the local currency tumbling, losing nearly 80% of its value before the dollar. The government is discussing ways to lift subsidies from some basic goods and has already increased the price of flour and basic
bread.
Meanwhile, a surge in coronavirus infections hovering at around 4,000 new cases a day in recent days and a strained health care system have compounded concerns. A massive explosion last summer in Beirut Port ravaged the city, killing over 200 and wounding 6,000.
The consequences of these repeated shocks on the economic well-being of households is far-reaching and potentially disastrous, said World Bank Regional Director Saroj Kumar Jha. The loan will provide cash assistance for a year to 147,000 extremely poor Lebanese households, or around 786,000 individuals, through a pre-paid electronic card.
The loan also includes school fees for some 87,000 children between ages 13-18. It will also help Lebanon develop a social registry to determine who would be in need of assistance in the future.
Lebanon has not had a census since 1932, when Christians were a majority. The country has a delicate sectarian balance and now the nation of five million is believed to be equally split between a third Christian, a third Sunni and a third Shiites.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU