Lebanon’s Central Bank Governor Riad Salameh said that the Banque Du Liban (BDL) is no longer capable of covering subsidies, Lebanese Daily Al-Akhbar reported on Thursday.
In the meeting of the ministerial committee on Wednesday, Salameh stressed that the Central Bank can no more go ahead with subsidies policy, calling on the government to “act and rationalize subsidies” announced earlier, according to the paper.
He noted that the foreign currency reserves are about to run out, and that the BDL can cover subsidies for major goods just for the two months to the greatest degree.
Lebanon is locked in its worst economic crisis since the 1975-1990 civil war, with no end in sight.
The value of the Lebanese pound has plunged hitting 10,000 to the US dollar in black market trading, and driving up the price of crucial imports like food and fuel.
Source: Al-Akhbar Newspaper (Translated and edited by Al-Manar English Website Staff)
