Lebanese caretaker Minister of Information Ziad Makari confirmed during a session at the Grand Serail that a positive atmosphere prevailed during discussions on the current year's budget. The first deputy governor of the Lebanese Central Bank, Wassim Mansouri, shared his perspective, noting that detailed discussions would take place after he assumes the governor's responsibilities. He also mentioned that two sessions have been called: the first tomorrow at 3:30 PM and the second on Thursday at 12:30 PM to discuss the budget proposal and open discussions on the legislation allowing the state to borrow from the Central Bank.
The Council of Ministers held a session on Monday, which the Prime Minister opened with a tribute to the Lebanese army before addressing the transition of the Central Bank's governorship to deputy governors. He pointed out a proposal regarding a law aimed at borrowing foreign currency from the Central Bank to fund the public sector, which will be distributed to them in preparation for discussion in the budget session.
Prime Minister Mikati highlighted several key points in his speech, expressing heartfelt congratulations to the army on its upcoming anniversary and announcing the promotion of officer cadets to lieutenants as per a decree approved in the previous cabinet meeting. He commented on the ongoing clashes in the Ain al-Hilweh camp, stating that they are working with the army and security forces to halt the violence and emphasized that they will not accept the use of Lebanese territory for settling external accounts to the detriment of Lebanon and its citizens, specifically the residents of Sidon.
He continued, stating that the army is fulfilling its duty in addressing this issue, and the occurrences are entirely unacceptable as they establish the camp as an area outside the government's control. He stressed that everyone residing in Lebanon must respect Lebanese sovereignty and applicable laws. Before entering the cabinet meeting, he contacted security officials, particularly army intelligence, to inquire about the situation, which indicated a serious cessation of fire, although there are parties outside this agreement that are continuously violating it.
Mikati mentioned, "I will not return to the topic of the last cabinet session that did not convene due to the lack of quorum, but I say that in the Currency and Credit Law, certain provisions precede others. The law states that in the event of a vacancy in the position of the Central Bank governor, a new governor must be appointed. According to the arrangement specified in the Currency and Credit Law, I called for the meeting to discuss monetary and financial situations. Since discussions on the topic began, I have stated that we do not accept divisions, but certain priorities are essential to consider according to the order of provisions in the Currency and Credit Law. After it became impossible to appoint a new governor, lengthy discussions were held with the deputy governors, especially the first deputy Wassim Mansouri, who, according to the law, will assume the position of Central Bank governor. I invited him to attend the meeting today to present his ideas for the Council of Ministers to discuss and request. In my view, what he requests aligns with the government's position regarding the reform projects we sent to the Parliament. He seeks the enactment of legislation that permits the government to borrow foreign currency from the Central Bank."
Mikati noted that the Minister of the Displaced has prepared a report concerning the return of displaced individuals, which will be discussed soon.
The key aspects of the expedited draft law permitting the government to borrow in foreign currencies from the Central Bank include that the loan should be a one-time borrowing, renewable only once. The government is required to do everything necessary to reduce its dependence on the Central Bank by enhancing revenue collection and prioritizing spending from its collected funds, avoiding reliance on the Central Bank and only utilizing it in emergency situations.
Additionally, it addresses the need to provide for the living stability of public sector employees and vulnerable groups, ensuring essential medicines and needs for patients, as well as covering the basic needs of the state, its armed and security forces, administration requirements, and the Central Bank's intervention in the currency market to maintain monetary stability. The law stipulates a plan for repaying these funds within eighteen months from the government’s revenues or through Central Bank interventions in foreign currency, maintaining the independence specified in the Currency and Credit Law while allowing the Central Bank to approve the government's borrowing requests.
First Deputy Governor Wassim Mansouri arrived at the Grand Serail for the cabinet session. After leaving, he told journalists, “The government is the one requesting the borrowing amount, and I did not sense any objections from the ministers to what I proposed.” In a conversation with the media, Finance Minister Youssef Khalil noted that no decision has been made regarding the amount and duration of the borrowing arrangement from the Central Bank.
Responding to a question about the absence of objections to the plan presented by Deputy Governor Wassim Mansouri, Minister Makari stated, “Dr. Mansouri presented how he views the matters and requested cooperation from the government, which welcomed it. We affirm a positive atmosphere, but nothing more than that; he has not yet officially taken over, as he will assume the role from Governor Riad Salameh tomorrow, and a second session will be held to discuss the plan in a serious and detailed manner.”
Regarding ministers' concerns about the plan, he stated, “We did not discuss this matter; Mansouri presented his plan and his perspective on things. A more detailed second session will be held when we can address specifics." He dismissed fears that the borrowing legislation would take time and affect public sector salaries, asserting, “Not at all; this discussion has not been raised; the atmosphere was positive, and that is what we want to communicate to people.” When asked about the budget, he clarified, "We have started reviewing it, and it requires about 4 to 5 sessions." Regarding the Deputy Prime Minister’s letter expressing opposition to this project, he announced, “The Deputy Prime Minister clarified his perspective in this letter, which the ministers will consider, and everything will be presented transparently in the upcoming two sessions."
