Assessment of Infrastructure Damage: A Collaboration Between the Government and the World Bank

Even before rebuilding residential and commercial units, priority will be given to restoring infrastructure as soon as hostilities end. This step is crucial to reestablishing the normal functioning of the social and economic fabric within any community. In this context, the caretaker government led by Najib Mikati, with the support of the World ...

In the Wake of War: How Conflict Is Shaping Consumer Choices in Lebanon

Many Lebanese have begun purchasing fruits and vegetables individually, a practice rarely seen in a culture that traditionally favors buying by the kilo. Grocery baskets have shrunk in both quantity and variety. Testimonies from mothers gathered by This is Beirut reveal a shift toward prioritizing legumes, which are more affordable than meat, ...

2025 Budget: A Looming Fiscal Crisis

With spending on the rise and revenues falling short of expectations, the 2025 budget proposal is now effectively obsolete. The government must act swiftly to withdraw it from Parliament, where it was submitted on time, to prevent a deepening crisis. Why is a crisis inevitable? The current draft budget relies on unrealistic revenue projections, ...

Trump's Economic Policies and Lebanon's Dollar Crisis

While the dollar’s value is primarily shaped by US domestic factors, its fluctuations continue to ripple through the global economy. A 2023 International Monetary Fund (IMF) study found that the negative impact of a strong dollar tends to last around two and a half years in emerging markets, compared to just one year in developed economies. The ...

Lebanon-Syria Border Crossings Under Israeli Surveillance

The Lebanon-Syria border is dotted with countless unofficial crossing points. Without natural barriers like rivers, mountains or a coastal divide, an effective demarcation of the border remains challenging. There are currently only six official crossings, three of which have been put out of operation by Israeli strikes. Masnaa, Kaa, Daboussiyeh, ...

All Eyes on Central Bank’s Reserves

Political pressure from the Amal-Hezbollah duo on the government is mounting, driven by rising complaints among the displaced population and the decrease in international aid. Faced with limited options, Lebanon is now in a state of voluntary default. All eyes are set on the foreign currency reserves of Lebanon’s central bank (BDL) and the ...

Hijacking Lebanon's Treasury Account 36

The Shiite duo (Amal-Hezbollah) reportedly has its sights set on the funds in Lebanon's Treasury Account 36 to support the displaced. This account comprises funds collected by the Lebanese state, primarily from taxes, customs duties, donations and other sources of public revenue. Recently, Hezbollah and Amal MPs and ministers, including Hussein ...

The Impact of Military Activities on 'Made in Lebanon' Products

The Lebanese industrial sector has experienced a significant loss of domestic market share, with the notable exception of the pharmaceutical and food industries, as consumers increasingly prioritize essential goods. Furthermore, opportunities for international trade have diminished. According to Ziad Bekdache, Vice President of the Association of ...

Lebanon's Grey List Status: No Reason to Panic!

Lebanon has been officially placed on the Financial Action Task Force (FATF) grey list, as announced on Friday. This expected decision came as no surprise. “Of course, we are aware of the extremely dramatic situation in Lebanon, currently,” said Mexican Gafi President Elisa de Anda Madrazo, following the FATF meeting in Paris. “I would like ...

Qlayaat Airport: It's Time to Open It to Air Traffic!

“The Qlayaat René Mouawad Airport could be opened for air traffic in emergencies to reduce the risks faced by crews and passengers at Beirut Rafic Hariri International Airport,” stated Sajih Attieh, chairman of the Parliamentary Committee on Public Works and Transport, in an interview with This is Beirut. The President of the Private Pilots ...

FATF: Lebanon Could Be Granted a Grace Period

According to several reliable sources, Lebanon could soon be added to the Financial Action Task Force (FATF) grey list. A decision is expected in five days. If confirmed, this would hardly come as a surprise. However, rumors have circulated over the past 24 hours about a possible postponement of the decision to November rather than October, ...

The Chaos of Insurance Against War Risks

Lebanon is under fire, and insurance premiums against war risks are reaching historic peaks. Reinsurers adjust the prices of premiums in real-time, responding instantly to changes in the intensity of the fighting on the ground. What is valid at one moment may no longer be so a few hours later. It’s chaos. Renewing war risk insurance policies in ...

Israeli-Iranian Conflict: The Strait of Hormuz as a Pressure Tactic

Iran may have to resort to a strategic tool: control of the Strait of Hormuz. According to several analyses, this tactic could be as devastating as a nuclear weapon. However, unlike a nuclear weapon, whose use would bring catastrophic consequences for Iran itself, the threat of closing the Strait of Hormuz serves as a form of "asymmetric ...

Maroun Khater: 'Defusing the Cheques Time Bomb'

In its meeting on October 9, 2024, the Central Council of Banque du Liban (BDL) amended main circular No. 166, extending its benefits to depositors who converted their funds from Lebanese pounds to foreign currencies after October 30, 2019. The council also updated main circular No. 147, requiring banks to return outstanding or circulating bank ...

Airline Tickets: Wartime Premiums

Lebanese authorities are resolute in their commitment to maintaining the “intact” reputation of BRHIA, ensuring stringent security measures, order and adherence to the law.  Furthermore, caretaker Minister of Interior and Municipalities Bassam Mawlawi and caretaker Minister of Transport and Public Works Ali Hamiye emphasized on Monday that ...

Oil Derivatives: Prices Linked to Security Concerns

In Lebanon, a country plagued by violent military actions, disruptions in the supply chain were predictable, although they remain limited for now. One of the most vulnerable sectors is the importation of oil derivatives. On Friday, tankers registered under the Italian flag were six kilometers off the Lebanese coast when they received orders to ...

Reverse Exodus: People Crossing into Syria

  Syrian migrants have begun returning to their country amid escalating military operations between Israel and Hezbollah. Lebanese nationals, particularly from the Beqaa Valley and South Lebanon, are also reportedly crossing into Syria. In its latest report, the United Nations High Commissioner for Refugees (UNHCR) has been on a Level 3 ...

BDL and Government Prioritize Palliative Solutions

In the aftermath of an absurd war, presented as support for Gaza, the Banque du Liban (BDL) and the Lebanese government have once again been compelled to rely on palliative solutions in the absence of more radical alternatives. In a memo signed by BDL Acting Governor Wassim Mansouri, banks have been instructed to provide beneficiaries of ...

Exchange Rate Pass-Through: Distorted Price Elasticity in Lebanon

  The transmission effect or exchange rate pass-through reflects the impact of currency depreciation on price levels, particularly their elasticity, driven mainly by changes in the prices of imported goods and services. This is especially relevant for Lebanon, which experienced a historic currency devaluation from 2020 to 2023, with its ...

BDL Gold Reserves See $9.83 Billion Accounting Surge

  The surge in gold prices has substantially benefited the Banque du Liban (BDL), resulting in a considerable increase in the value of its gold reserves. An auditing firm, appointed by BDL’s commissioner for Foreign Affairs with the coordination of the International Monetary Fund (IMF), conducted an inventory on November 24, 2022, which ...

The Implementation of Electronic Tax Stamps Still Far Off

L The transition to electronic tax stamps is a necessity. It didn’t come as a surprise to the general public when MP Ibrahim Kanaan, head of the Parliamentary Finance and Budget Committee, made this announcement last week after the committee's meeting. What concerns citizens most is when and how they will be able to access it. At this point, ...

Budget 2025: A Major Gap Between Theory and Reality

  The reinstatement of fiscal and budgetary discipline remains an unattainable goal. By submitting the 2025 draft budget to the government, caretaker Finance Minister Youssef Khalil once again bypassed the laws and regulations governing the preparation of the state budget. In early September, caretaker Finance Minister Youssef Khalil ...

Salaries: The Enduring Struggle of Retired Military Personnel

The government failed to fulfill its commitment to provide a decent salary for public sector employees, especially retired army personnel, who once again took to the streets on Tuesday to express their outrage. The decline in purchasing power of wages and pensions of military personnel, veterans and public sector employees is not a new issue. ...

Budget 2025: An Equation with Many Unknowns

Listen to the article   The objective of the 2025 budget proposal is to maintain a relative balance between revenues and expenditures, with the aim of keeping the overall deficit under 4.1%, or approximately $190 million. The draft budget submitted in August by caretaker Finance Minister, Youssef Khalil, forecasts a substantial increase in ...

Bank Loans Are Back…

Bank loans are back, but the criteria for accessing them are stricter in terms of candidate eligibility, loan purpose, amount, and repayment period. Contrary to popular belief, these loans are not available due to fresh deposits in foreign currencies. Such deposits are tightly protected and regulated by a series of circulars issued by the ...

Lebanon: Room for the Elderly

Who remains in Lebanon? Primarily the elderly. Who is emigrating? The young, but also families. The demographics of the Lebanese population are undergoing a significant shift, mainly due to the economic deadlock in which the country finds itself. Emigration is not a new phenomenon for societies, which typically experience migratory cycles limited ...

The Banking Dollar Maintained At 15,000 LBP

The exchange rate of the banking dollar, also called the "lollar" or local dollar, will officially remain at 15,000 pounds until a new decision is made. As for the cash dollar, it is set at 89,500 pounds. This proposal was submitted by the caretaker Minister of Finance, Youssef el-Khalil, to the Council of Ministers during the meeting held last ...

Resumption of Flights: Are Insurance Companies Reassured?

Air France and Transavia resumed their flights to Beirut on Thursday, after suspending them on July 29. Does this mean that Beirut International Airport (BIA) is now considered safe for civil aviation, despite ongoing hostilities in southern Lebanon? Is this an indication that reinsurance and insurance companies have revised their assessment of ...

Investment: Torn Between Gold and Silver Bars

JP Morgan experts believe that gold and silver are the most promising metals of the year, forecasting that the price of silver will soon surpass $30. While the price of an ounce of silver recently hit a high of $30, a level not seen since 2013, it still hasn't reached its historic peak of $50, recorded in 1980. Deciding between investing in gold ...

René Mouawad Airport: A Strategic Advantage

The Qlayaat René Mouawad Airport is not intended to compete with Beirut Rafic Hariri International Airport. Its purpose is to address urgent needs in security, logistics, and economic development. The rehabilitation of Qlayaat René Mouawad Airport is contingent upon the approval of the Minister of Public Works and Transport, Ali Hamiyeh, who ...