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In Lebanon, banks pay the price of economic crisis and catch fire | Israel today

2020-04-28T21:56:52.859Z


the Middle East


The closure imposed to curb the Corona epidemic only provoked the protest • Lebanese pound continues to plummet • And Prime Minister Hassan Diab claims intentional hand "undermines stability"

  • Military vehicles were set on fire in Tripoli

    Photo: 

    AFP

Despite the danger of the spread of the Corona virus, Lebanese protesters took to the streets during Tuesday's protest in the economic crisis. Bank branches were set alight during a night of clashes between Lebanese security forces and young protesters, during which a protester in Sidon found his death. That's how Reuters reports. 

The collapse of the value of the Lebanese pound, rampant inflation and rising unemployment have shocked Lebanon, which has been in yet another economic crisis since October last year. And if that is not enough, the closure imposed to curb the spread of the global plague has further aggravated the shattered economy. 

Protesters throw Molotov cocktails at Bank Sidon // Photo: "Malakh"

Last night, military branches and military vehicles were set on fire across the state. In response, soldiers used tear gas grenades and fired rubber bullets to disperse the demonstrations, leading to dozens of wounded. The person killed in Sidon was a 20-year-old man and it is unclear exactly what caused his death. Meanwhile, demonstrations returned to the streets today with at least two banks set on fire in Sidon, whose fronts were shattered. Violent demonstrations also erupted in Tripoli, and several local banks caught fire. Similar clashes have also occurred in Beirut. 

New Prime Minister Hassan Diab, backed by the Hezbollah terrorist organization, called on protesters to avoid violence, saying there were those behind the scenes deliberately staging the demonstrations to shock stability. "We are facing a new reality," he said, "a reality in which social crises are escalating rapidly, especially with the rise of the US dollar exchange rate in the black market." 

Since October, the Lebanese pound has lost more than half its value. The trend continued more intensively over the past week, sparking small protests despite the closure imposed and the request of authorities to stay in their homes. 

The dollar is currently worth 4,200 Lebanese pounds in Lebanon according to one of the indices. This is despite the fact that the central bank has set the rate at £ 3,200. Recently, some money changers were arrested who sold dollars at a more expensive rate. And as a result, the workers' union of the exchangers declared a strike. A step that contributed to raising the protest in the streets. 

As we recall, last March, banks set a quota of up to $ 100 a week to withdraw cash. The government that imposed a closure has allowed banks to continue to operate in a limited manner. But the banks themselves announced that they would close their doors by March 29 to protect their workers from the plague spread, leaving only a few branches to handle payrolls in Lebanese pounds. This decision angered the Lebanese, who saw this as an excuse for denial of service. For example, many business owners had difficulty paying salaries due to the cash restriction. The price for these restrictions, the Lebanese banks are now paying.

Source: israelhayom

All news articles on 2020-04-28

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