Latest news with #TheresiaRahme
LBCI
02-05-2025
- Business
- LBCI
Lebanon eyes recovery driven by reforms with $934M in preliminary funding
Report by Theresia Rahme, English Adaptation by Karine Keuchkerian You've probably heard about Lebanon's participation in the 2025 Spring Meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF) — but what actually came out of it? The Lebanese delegation, led by Finance Minister Yassine Jaber and joined by senior advisors and officials, took part in dozens of official and bilateral meetings. They engaged with a broad range of stakeholders, including the International Monetary Fund, the World Bank, international investors, global organizations, Arab and foreign funds, and key global figures. The outcome: both the World Bank and the IMF reaffirmed their support for Lebanon and its reform agenda. However, financial assistance is conditional — real progress on reforms is required. As part of the outcome, Lebanon secured preliminary approval for $934 million in funding. The package includes $250 million for the electricity sector under a signed loan agreement. The funding is designated for establishing a national control center, building "solar farms" expected to save $40 million annually, rehabilitating three hydroelectric plants, upgrading accounting and billing systems, and modernizing the electricity transmission network. An additional $256 million is allocated for the water sector, $200 million for agriculture, $200 million for social protection, and $28 million for digitalization. All financing will be offered on concessional terms, with repayment periods extending up to 50 years. These gains represent a critical opportunity to restore growth and stability. However, success depends on Lebanon accelerating reform legislation, continuing coordination with the IMF and World Bank, strengthening ties with the international community and the Lebanese diaspora, and adhering to its action plan with the Financial Action Task Force (FATF). That plan aims to remove Lebanon from the grey list. Increased private sector engagement and investment in productive sectors will also be essential.
LBCI
06-04-2025
- Business
- LBCI
Gold vs. silver: A closer look at the market's future
Report by Theresia Rahme, English Adaptation by Karine Keuchkerian Amid market shifts and fluctuating prices, a key question emerges: what's the difference between gold and silver, and which is the better investment? Gold is considered a safe investment, maintaining its value, and is used by central banks as a monetary reserve with a high price. Recently, the price of an ounce reached $3,000. On the other hand, silver is much cheaper, with the price of one ounce around $29. But why do some predictions suggest silver might reach $100 per ounce? Silver has become an essential component in modern technology, from solar energy to electric cars, batteries, 5G, and artificial intelligence. As the world advances technologically, the demand for silver is expected to keep rising. This rapid growth in demand faces the reality that silver mines are not producing enough to meet global needs, increasing the likelihood that silver's value will rise in the future. The highest price silver reached was nearly $50 per ounce in the late 1970s, and it came close to that level again in 2011. That significant rise at the time was driven by strong investment demand for silver. Although silver has not reached those prices again, predictions suggest the overall trend of prices is upward, particularly with rising industrial and investment demand. Despite market fluctuations, especially since silver is influenced by factors such as interest rates, the U.S. dollar, geopolitical tensions, and tariffs (like those imposed by the Trump administration), the market is expected to correct itself quickly. So, between gold and silver, prices are rising fast. If predictions hold true, the price of an ounce of gold could reach $5,000 by 2028. As for silver, it's still too early to tell, but it's moving in the same upward direction. Who knows, this time it might not stop at $50—or even $100! And now you have the answer.
LBCI
04-04-2025
- Business
- LBCI
IMF conditions: EU works with Lebanon's Ministries of Finance and Economy on aid and reforms
Report by Theresia Rahme, English adaptation by Yasmine Jaroudi Lebanon is still searching for financial aid from various sources, including the Gulf, the International Monetary Fund (IMF), and the European Union. However, without significant reforms, the country's prospects for securing these funds remain bleak. Currently, the European Union has begun working with Lebanon's Ministries of Finance and Economy to establish programs that outline how the country could receive aid, contingent on implementing the necessary reforms. A European delegation, which met with Lebanon's Finance and Economy ministers, clearly stated that any serious support from donors or investors hinges on an agreement with the IMF. They emphasized that institutional reforms, banking sector restructuring, and infrastructure improvement are key requirements. The meetings between the EU and Lebanese officials are expected to intensify in the coming period, with the primary goal of identifying which sectors need support and development. The EU will focus on the micro-economy—assisting businesses, institutions, and individuals—differentiating it from the IMF's approach, which targets macroeconomic support for the state through government-level projects. Despite these discussions, Lebanon still lacks a clear set of priorities and has not yet provided specific figures regarding the size of the financial assistance it requires. According to sources from LBCI, there are still no clear priorities set or figures addressed on the amount of aid required.
LBCI
31-03-2025
- Politics
- LBCI
US suspends USAID: What does this mean for Lebanon and global aid programs?
Report by Theresia Rahme, English Adaptation by Karine Keuchkerian The United States Agency for International Development (USAID) shut down, and U.S. aid is now under the control of one ministry. After U.S. President Donald Trump set a 90-day deadline to decide the future of USAID, the new administration chose to close the agency and transfer the responsibility of providing aid to the U.S. State Department. In short, there is no longer an independent agency handling development, educational, and humanitarian projects worldwide. Instead, aid is now tied to political decisions and a single ministry. The remaining employees, about 900 in total, now face two options: stay on active duty to help shut down programs and transfer them to the State Department, or request administrative leave and begin searching for new jobs. Lebanon is one of the countries that benefits from USAID assistance. So, what does the future hold for its recipients? All aid from USAID to Lebanon has been halted. However, U.S. support for the Lebanese army will continue, considering its necessity. The suspended aid has impacted development programs for villages and towns, as well as other humanitarian assistance. It also affects university students who have been receiving scholarships from the agency. Some universities have announced they will not abandon their students and are exploring ways to cover part or even all of the tuition. However, nothing official or guaranteed has been confirmed yet. What is certain is that students who were benefiting from USAID scholarships have lost all the advantages the grant provided, including housing allowances, living support, and, in some cases, health insurance and complete coverage of tuition fees.
LBCI
24-03-2025
- Business
- LBCI
Lebanese lira ranks as the world's weakest currency amid deepening economic crisis — What's driving its decline?
Report by Theresia Rahme, English Adaptation by Karine Keuchkerian Leading the world's weakest currencies, the Lebanese lira today ranks first in the Arab world and globally as the weakest currency, according to the Wise platform's classification. Regionally, it is followed by other depreciating currencies, including the Syrian pound, Iraqi dinar, Sudanese pound, and Yemeni rial. Globally, the Lebanese lira has even performed worse than the Iranian rial and is weaker than currencies from countries such as Vietnam, Sierra Leone, Laos, Indonesia, Uzbekistan, Guinea, and Paraguay. Every weak currency reflects a weaker economy. In Lebanon, several factors contribute to the weakness of the Lebanese lira. First, interventions by the Central Bank of Lebanon—printing more pounds and injecting money into the market without adequate coverage—have lowered its value. The currency quickly loses value when there are too many pounds in circulation and no corresponding production or reserves. Second, Lebanon imports more than 80% of its goods, meaning traders constantly need U.S. dollars. Since demand for dollars exceeds supply, the value of the Lebanese lira drops. Third, inflation has surged uncontrollably, surpassing 200% after 2019, further diminishing the purchasing power of the Lebanese lira. Fourth, the economy is weak, unemployment is rising, and people have less money to spend. Investors also lack confidence in the economy. Above all, there is a complete absence of political stability coupled with regional security tensions. In such a climate, investors flee, and the influx of U.S. dollars into the country decreases. Although these factors also affect other countries, Lebanon has been one of the most impacted due to the scale of the crises, lack of reforms, and chronic mismanagement.
