Depositors’ Union letter to the World Bank

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The Lebanese Depositors’ Union sent a strongly worded objection to the World Bank, requesting a review of the unfair conditions of the humanitarian loan amounting to 246 million dollars that only encourages more corruption. The Union made the following points:

  1. The beneficiaries will lose 30% of the value of the loan due to the conditions imposed by the Lebanese Government and the Central Bank since the loan will be distributed to the poor on the basis of a dollar exchange rate of 6120 Lebanese pounds, while the market rate has reached 9000 Lebanese pounds.
  2. In the absence of subsidy rationalization policies and a fair financial plan to exit the crisis, the loan solidifies existing monopolies.
  3. Furthermore, this loan finances unsustainable social policies that enable the ruling clique’s approach but without an integrated reform plan.

The Depositors’s Union called for a review of the loan implementation mechanisms in relation to the exchange rate and called on the World Bank to disburse the amount directly to the beneficiaries in dollars or its equivalent at the market price.

The Union also demanded the World Bank to stop financing state institutions or the Central Bank in the absence of a clear, fair and transparent financing plan to exit the crisis. These loans are an additional debt on the shoulders of the Lebanese people. The funds are distributed by an authority that has proven its failure to manage the state’s finances and to preserve the state’s competencies and resources.

To view the text of the original message in English, Click Here

To view the text of the message in Arabic, Click Here

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