The European Union, the United Nations, and the World Bank have ratified a deal between Lebanon’s central cank and its deputy prime minister to distribute aid in U.S. dollars, Reuters news agency reports.
Lebanese poor groups could receive more help soon after letter from international donors showed Wednesday that there was agreement to provide support in hard currency as the Lebanon pound fell to a level new low.
Support for the country in the midst of a financial situation exacerbated by the COVID-19 pandemic was provided in Lebanese notes at levels set by the Banque du Liban, the central bank.
But in a letter to the country’s finance ministry seen by the Thomson Reuters Foundation, representatives from the European Union, the United Nations and the World Bank said they were “noting the verbal agreement” on February 22 with the head of the central bank and deputy prime minister for aid payable in United States dollars.
“We are confident that you share the urgency of introducing the agreed payment mechanisms at the earliest, to ensure the sustainability and continuity of aid in the midst of socio-economic conditions. is increasingly challenging, “the letter said.
Outgoing Finance Minister Ghazi Wazni and a World Bank spokesman did not immediately respond to a request for comment. An EU spokesman said the bloc would comment soon.
The Lebanese parliament last week approved a $ 246m World Bank loan for a social security net. According to the loan agreement, it would have been provided in Lebanese notes.