Lebanon supports $ 556 million in struggling families Business and Economic News

The subsidy would give the benefiting families a proper relief in the Middle Eastern nation as a result of the disintegration of the economy.

The Lebanese parliament on Wednesday approved cash payments to struggling families economically, which would cost $ 556 million a year and remove a $ 6 billion subsidy program for basic goods.

All families eligible for the program would receive about $ 93 a month, a source close to the government told Reuters news agency.

The Middle Eastern nation is in the midst of a growing financial crisis, as more than half of the population has plunged into poverty and their homes are struggling to acquire basic goods.

The Lebanese currency has lost more than 90% of its value since October 2019.

Frustration and anger continue to pour into the streets, with anti-government protests and demonstrations dispersing the nation. Critics say the government does not offer a credible financial solution that could unlock billions of dollars in international aid.

The World Bank warned earlier this month that the economic crisis in Lebanon could be positioned as follows among the three worst in the world has seen it for the last 150 years.

The lack of critical elements like medicine and fuel has worsened over the past month as central banks lack funds to fund the program.

Lebanese Ministry of Energy a a severe blow rising fuel prices by more than 35% to already besieged pockets on Tuesday.

Rising prices will put even more pressure on Lebanese consumers both at the pumps and elsewhere. Long queues of fuel have become violent as frustration has increased in recent days.

And some hospitals are delaying elective surgeries to save on essential health supplies like anesthetics.

Foreign bookings

The Lebanese central bank has called on the government to give the legal green light to immerse itself in mandatory reserves. The demand is a sign that the bank has exhausted its foreign reserves.

Mandatory reserves – hard currency deposits parked by local lenders at the central bank – are a percentage of customer deposits and are usually not included unless exceptional circumstances so require.

The Lebanese parliament has ordered the government to approve the extra credit to fund the subsidy program.

The move indicates that this will be financed through the central bank’s mandatory reserves, a member of parliament told Reuters news agency.

The United Nations has warned that the removal of subsidies could lead to a “social catastrophe” given the lack of government services and funding to help fight the Lebanon.