"The Economy" Plans to Gradually Lift Subsidies on Bread

The Lebanese Ministry of Economy is moving towards rationalizing subsidies on flour designated for bread production, paving the way for a complete cessation of these subsidies, which will automatically result in an increase in the price of a loaf of bread, likely doubling its cost. The policy of subsidizing numerous commodities since the onset of the economic crisis in Lebanon nearly three years ago has led to the depletion of the mandatory reserves of foreign currency at the Central Bank of Lebanon, exacerbating the country's financial crisis and increasing the phenomenon of smuggling, especially given the porous borders. For weeks now, Lebanese citizens have been lining up in long queues in front of bakeries to ensure they receive one loaf of bread per person. According to the Minister of Economy in the caretaker government, Amin Salam, 75 percent of those queuing are Syrian refugees, while 400,000 loaves of bread are distributed daily to these refugees, who benefit from $7 million in monthly subsidies from the mandatory reserves for bread.