Banque du Liban: Insufficient reserves for medical supplies imports
The Central Bank of Lebanon said today, Thursday, that it cannot continue importing subsidized medical supplies without prejudice to the mandatory reserves of banks, calling on the relevant authorities to find a solution to the problem.
Lebanon, which is creaking under the weight of a financial crisis threatening its stability, has supported fuel, wheat, medicine and other basic commodities since last year.
In a statement issued after the caretaker Minister of Health, Hamad Hassan, announced that he had visited the Central Bank to request the release of funds necessary to purchase medicines, but to no avail, the bank said that it would not spend from its mandatory reserves to cover the cost of subsidized medical supplies amounting to $ 1.3 billion.
He added, "The total cost that the Banque du Liban is required to secure for banks as a result of the policy of supporting the import of these medical materials cannot be provided without prejudice to the mandatory employment of banks, and this is what the Central Council of Banque du Liban rejects."
Lebanon's hard currency reserves have declined to an alarming extent, from more than $ 30 billion before the outbreak of the financial crisis in late 2019 to just over $ 15 billion in March.
The cost of the subsidy program is generally about $ 6 billion annually.
Hassan said in a TV program last week that about 50% of the necessary medicines are available, but that importers are waiting for payment.
Lebanon, which is politically paralyzed, saddled with debt and struggling to secure funding from potential donor countries and institutions, has announced that the support funds will run out in May.
Merchants and consumers criticize the structure of the subsidy system and the way it is applied, saying that it involves waste because it includes a long list of unnecessary goods.
