The Lebanese National Bloc party proposed a number of banking and governmental measures to reduce the effects of an “economic catastrophe” that will be caused by the country being shut down to reduce the spread of the Corona virus. The Bloc warned of “a complete stop of the economic cycle” and “an unparalleled living crisis and security issues”.
In a statement, the Bloc expected that the economic and living repercussions of the economic crisis would worsen, especially since the October revolution exposed that the state was bankrupt. It stated that the daily losses of the general mobilization can be estimated between $110 million and $150 million. The latest statistics showed that over 220 thousand employees have been laid off, a number that is about to explode with the expected closure of thousands of businesses soon.
The Bloc noted that most countries have taken measures to safeguard their economies, like central banks providing liquidity and multi-billion dollar governmental subsidies for businesses; while it expressed regret about the parties/sects crimes over the last 30 years against the public’s money, now that the Central Bank and the government in general are completely unable to create any additional liquidity to support the economy. This is a reality that is widely understood, however, it does not justify a lack of action in order to thwart the economic catastrophe that is sure to happen now that the economic cycle has come to a complete stop. It will be an economic catastrophe that will have an effect on the living conditions and the security situation in the country.
Therefore, the Bloc has recommended a set of procedures for the banks and the government to apply, and attached with the recommendations an annex detailing possible reductions to the public budget to cover the cost of these procedures:
The time frame for each of the procedures will be determined based on need and availability of resources. After conducting a quick and detailed study of the items in the above procedures we find that although they will increase the budget deficit, there are many ways to decrease expenditure to cover all the exemptions mentioned above without compromising the continuity of public utilities.