SAWT BEIRUT INTERNATIONAL

| 27 May 2024, Monday |

What awaits Lebanese late September with regard of electricity and generator bills?

Association of Banks: We look forward to implementing Circular 158

The Head of the Association of Banks in Lebanon Salim Sfeir, said that the banking sector, in cooperation with the private sector, will be a key driver to bring Lebanon out of the economic abyss. He stressed that the sole way to resolve the financial and monetary crisis is negotiating and agreeing on a plan with the International Monetary Fund (IMF).

Sfeir explained that hyperinflation along with the drop in value of deposits, and the failure to pass the Capital Control Law, are all the responsibility of the unqualified government, which failed to manage the crisis. Banks cannot be blamed neither for the hike in the dollar exchange rate on the black market, nor for the inflation that recorded its highest levels.

Sfeir said: “Today, after a series of circulars by the Central Bank that aimed at limiting the effects of the crisis, we are looking forward to implement Circular 158, which will relieve a large segment of small depositors and allow them withdraw gradually part of their deposits in dollars.

What awaits the citizen after September in terms of electricity and generator bills?

The answer is in this report: The first shipment of Iraqi fuel arrives in Lebanon during the second week of September, including 30,000 tons of heavy fuel, to be followed by the 2nd shipment, that involves 33,000 tons of gas oil in the third week of September.

Accordingly, the power supply will increase to 6 and 8 hours per day until the Électricité du Liban (EDL) runs out of its fuel stock late September. After that, if fuel wasn’t imported for EDL the country will plunge again into total darkness, especially that the Minister of Energy Raymond Ghajar, confirmed that the ministry doesn’t have the required funds to import fuel. Therefore, power supply in September, will depend only on Iraqi fuel, meaning that the power cuts will increase again and supply will drop to 4 and 6 hours per day only.

In such case, private power generators will be responsible in late September for securing about 20 hours of power per day. However, it is not sure that generator owners will be able to secure diesel oil at subsidized prices, therefore, hey have to resort to the black market to secure diesel, and this will increase the cost and the price of 5 amps will reach 3 million LBP! Will any employee be able to afford power?

Economic bodies warn of stopping the state’s engines

The economic bodies held a meeting during which they discussed the current economic situation and its repercussions on all productive sectors, and possible solutions to overcome the difficult stage that Lebanon is currently going through.

The attendees addressed the damages on the economy “due to the currency’s deterioration and its impact on the living conditions, purchasing power, and the salaries of private sector employees.”

They also discussed the impact of the collapse in the exchange rate of the lira on the minimum wage, school tuition fees, transportation allowances, and the loss of fuel, whose repercussions affect all production sectors,” warning of “stopping the state’s engines due to power cuts, and diesel and gasoline outages.”

    Source:
  • Sawt Beirut International