Careatekr Prime Minister Najib Mikati, August 1, 2023 (Credit: Mohammad Yassine/OLJ)
BEIRUT — At the Grand Serail on Tuesday, Najib Mikati's caretaker government discussed the issue of borrowing foreign currency from the Banque du Liban (BDL) during a session devoted to the 2023 draft budget, according to a press release issued by the Prime Minister's office and seen by L'Orient-Le Jour. Mikati requested that Parliament draft a bill allowing the State to borrow from the BDL. The government has already drafted a bill to this effect.
A new government session is scheduled for noon on Thursday to continue discussion on the draft budget, according to the official state-run National News Agency.
"Bills must be sent out at least a week before they are discussed by the Council of Ministers. Yesterday [Monday], we circulated a bill allowing the government to borrow foreign currency from the Banque du Liban, which means that discussion of this text will take time and the BDL needs us to be quick," Mikati stated. "I therefore propose that deputies present a bill, especially as some may object to the government sending a bill," he added.
Contacted by L'Orient-Le Jour, a government spokesman was not immediately available for comment.
The bill referred to by Mikati was requested on Monday by Wassim Mansouri, the BDL's first deputy governor, who has been its de facto governor since Riad Salameh's term of office ended on July 31. Mansouri referred to the request made to Parliament by the four vice-governors to pass a law authorizing them to dip into the central bank's compulsory reserves for the sum of $200 million per month, for three months, on condition that the firm repay the amount within a year. However, recent press reports point to "attempts" by Mikati to reduce this amount to 150 or even 100 million dollars.
Several Christian parties, notably the Free Patriotic Movement (FPM), are opposed to government meetings at this time and accuse Mikati of seeking to take on the prerogatives of the President of the Republic.
Lebanon's caretaker Deputy Prime Minister, Saadeh Chami, warned on Tuesday that the Lebanese state "will not be able to repay the money borrowed [from the BDL], even in the medium term."