The cabinet is scheduled to meet this morning to discuss a 76-item agenda. (Credit: Dalati and Nohra)
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The cabinet will meet this morning in an ordinary session with 76 items on the agenda. The cabinet will consider draft laws related to renewable energy, public procurement, the court of cassation, foreign loan agreements and diplomatic affairs. It is also set to transfer LL5 billion to the presidency of the council for ministers and to the directorate of public finance for fuel expenses, accept some gifts from donors and permit certain real estate transactions in Baabda, Tripoli, Aley and Kesrouan. One particularly important proposal being considered today is a draft law that would reduce the judicial powers of the public prosecutor of the Court of Cassation, currently Ghassan Oueidat. The law would transfer the power to make a final decision over the prosecution of state employees from Oueidat to the justice minister.
Amos Hochstein, the US mediator in Lebanon-Israel maritime border negotiations, is returning to Beirut today, according to reports. His visit, which was postponed several times, comes just days after Lebanon sent a letter to the United Nations confirming its claim that the maritime border lies at the so-called Line 29, which cuts through the Karish gas field that is currently being developed by international energy company Energean. The letter, which increased the disputed area from 860 square kilometers to 2,290 square kilometers, was interpreted as a play to increase pressure on the other parties to move negotiations forward. The Lebanese government launched a call for tenders in eight blocks late last year, drawing an official Israeli complaint to the UN. Hochstein reportedly met with Israeli officials at the end of January.
Cold weather and high demand have created a diesel shortage, according to fuel industry insiders. The spokesperson for the fuel distributors’ syndicate, Fadi Abou Chakra, the head of the Association of Petroleum Importing Companies, Maroun Chammas, and representatives for private generator owners told L’Orient Today yesterday that the fuel market has seen shortages of diesel for at least one week. Diesel is one of the primary fuel sources for winter heating in Lebanon. Chammas also said that many fuel distributors and gas stations have begun hoarding fuel in expectation of another crash in the lira’s value, which would drive the lira price of fuel higher. Two of the fuel industry representatives L’Orient Today spoke to said that Lebanon can expect a large shipment of diesel soon.
The Association of Banks in Lebanon objected to a draft government plan for distributing financial sector losses that has been circulating in recent days. The plan, as reported by Reuters, foresees returning just $25 billion out of $104 billion in hard currency deposits to their owners in US dollars. Most of the remainder would be converted to lira at several unfavorable exchange rates in de facto haircuts. According to Reuters, ABL, which represents Lebanon’s bankrupt banks, “said it would not endorse a plan that would lead to a ‘nominal haircut on customers' deposits’ or totally wipe out shareholder equity, but was open to shouldering some losses from Eurobonds restructuring and private sector loans.” The banking association, whose members have largely shut their doors for two years in a bid to delay admitting they no longer have customers’ money, said the government’s plan would lead to a “loss of confidence” in the banks.
There will be no Morning Brief tomorrow as Lebanon takes an official holiday in observance of the feast day of Mar Maroun, the 4th century monk and founder of the Maronite Church. Public institutions and banks will be closed.