Lebanese Prime Minister Hassan Diab and International Monetary Fund managing director Kristalina Georgieva discussed the government’s plan to rescue the economy from its worst crisis in three decades.
“I had a productive call with Lebanon’s PM @Hassan_B_Diab today to discuss the government’s Recovery Plan, which is an important step forward to address #Lebanon’s economic challenges,” Ms Georgieva said in a tweet on Monday.
“We agreed that our teams will soon start discussions on much-needed reforms to restore sustainability and growth for the benefit of the Lebanese people.”
Lebanon formally asked the IMF for a loan of at least $10 billion (Dh36.7bn) on Thursday. The economy has buckled under the weight of mounting debt that forced the country to default on eurobonds in March.
Lebanon's gross domestic product is set to contract 12 per cent this year, according to IMF projections. The country's debt ballooned to $92 billion at the end of January, making it one of the highest debt-to-GDP ratios worldwide.
In total, Lebanon has about $31bn in bond maturities and the bulk of that is held by local financial institutions, with lenders and the central bank accounting for 33.4 per cent and 43 per cent, respectively.
Deposit flows, which financed the country’s deficits and shored up its banking system, have dried up while credit has been frozen and the Lebanese pound has lost more than half of its value against the US dollar.
Long-running political disputes and successive changes of government have prevented Lebanon from carrying out structural reforms needed to unlock pledges worth $11bn by international donors.
The Association of Banks in Lebanon rejected the government's rescue plan and said it was "not consulted" by Mr Diab's administration.
“The association is an essential part of any solution, as the economy requires a strong banking sector capable of playing its role as a means of social integration and growth by granting credit to individuals and companies,” ABL said, a day after the government submitted its request to the fund.
The government’s recovery plan is comprised of measures to adjust the exchange rate regime and restructure public debt and the financial sector.
It also intends to bring about fiscal consolidation and structural, social and environmental reforms while seeking international financial aid.
The programme assumes an exchange rate that fixes the pound at 3,500 to the US dollar – more than double the peg that has existed since 1997.
There are plans to move to a flexible system in the future through a float or a crawling peg, where the rate is frequently adjusted in line with market conditions.
Furthermore, the plan assumes that the country will receive external financial support and the government will successfully execute the reforms in full.
It also assumes that the government will reach a debt restructuring agreement with creditors this year.
The government’s programme envisages the restructuring of the central bank and commercial lenders.
It estimates the central bank’s losses at 117 trillion pounds ($77.6bn/Dh285bn) and impaired liabilities at 121tn pounds.
Commercial bank losses incurred as a result of the crisis and restructuring of public debt are estimated at 186tn pounds.
ABL, however, said that "the local restructuring process, as outlined in the plan, would further undermine confidence in Lebanon, domestically and internationally”.
“At the same time, the plan cited key elements for restoring and strengthening investor confidence, such as an effective anti-corruption strategy, but not being detailed – raising questions about the timing of implementation," it said.
"In fact, the plan is likely to hinder investment in the economy, and therefore the prospects for recovery.”
ABL said the government’s plan does not address inflationary pressures, and may lead to high inflation.
It also said “the social inclusion component of the plan ... requires further explanation and detail, particularly on the following three priorities: job retention, poverty alleviation and inequality reduction.”
ABL said there was an urgent call "for a constructive dialogue" and promised to play its part in supporting the country while adhering to its “fiduciary duties as we have done in the past”. It also called for concrete action and consensus among all concerned parties.
“Every day that passes without reform exacerbates the situation,” ABL said.
It said it intends to present to the government a plan to mitigate the effects of the recession and pave the way for sustainable growth.
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More on animal trafficking
Tips for taking the metro
- set out well ahead of time
- make sure you have at least Dh15 on you Nol card, as there could be big queues for top-up machines
- enter the right cabin. The train may be too busy to move between carriages once you're on
- don't carry too much luggage and tuck it under a seat to make room for fellow passengers
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
Mohammed bin Zayed Majlis
What is Folia?
Prince Khaled bin Alwaleed bin Talal's new plant-based menu will launch at Four Seasons hotels in Dubai this November. A desire to cater to people looking for clean, healthy meals beyond green salad is what inspired Prince Khaled and American celebrity chef Matthew Kenney to create Folia. The word means "from the leaves" in Latin, and the exclusive menu offers fine plant-based cuisine across Four Seasons properties in Los Angeles, Bahrain and, soon, Dubai.
Kenney specialises in vegan cuisine and is the founder of Plant Food Wine and 20 other restaurants worldwide. "I’ve always appreciated Matthew’s work," says the Saudi royal. "He has a singular culinary talent and his approach to plant-based dining is prescient and unrivalled. I was a fan of his long before we established our professional relationship."
Folia first launched at The Four Seasons Hotel Los Angeles at Beverly Hills in July 2018. It is available at the poolside Cabana Restaurant and for in-room dining across the property, as well as in its private event space. The food is vibrant and colourful, full of fresh dishes such as the hearts of palm ceviche with California fruit, vegetables and edible flowers; green hearb tacos filled with roasted squash and king oyster barbacoa; and a savoury coconut cream pie with macadamia crust.
In March 2019, the Folia menu reached Gulf shores, as it was introduced at the Four Seasons Hotel Bahrain Bay, where it is served at the Bay View Lounge. Next, on Tuesday, November 1 – also known as World Vegan Day – it will come to the UAE, to the Four Seasons Resort Dubai at Jumeirah Beach and the Four Seasons DIFC, both properties Prince Khaled has spent "considerable time at and love".
There are also plans to take Folia to several more locations throughout the Middle East and Europe.
While health-conscious diners will be attracted to the concept, Prince Khaled is careful to stress Folia is "not meant for a specific subset of customers. It is meant for everyone who wants a culinary experience without the negative impact that eating out so often comes with."
Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
What are NFTs?
Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.
You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”
However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.
This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”
This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.
THE SPECS
2020 Toyota Corolla Hybrid LE
Engine: 1.8 litre combined with 16-volt electric motors
Transmission: Automatic with manual shifting mode
Power: 121hp
Torque: 142Nm
Price: Dh95,900
Match info
What: Fifa Club World Cup play-off
Who: Al Ain v Team Wellington
Where: Hazza bin Zayed Stadium, Al Ain
When: Wednesday, kick off 7.30pm
