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bankingOctober 11, 2020

Diab Warns BDL against Ending Subsidization of Essential Goods

Caretaker Prime Minister Hassan Diab on Friday warned the central bank against ending the subsidization of imported medicine, flour and fuel.

“Some are promoting the idea of lifting subsidization off medicine, flour and fuel. Banque du Liban’s inclination to lift subsidization will be unacceptable amid these circumstances,” Diab cautioned in a speech from the Grand Serail.

“BDL will itself bear the responsibility for any move to lift subsidization in addition to all those who cover such a decision. The losses with continued subsidization will be lesser than the cost of ending subsidization,” he added.

Criticizing the central bank, Diab went on to say: “If only BDL had stopped financing the policies of squandering the funds of depositors. If BDL had failed to resist political pressures in the past, being emboldened against the people is not understandable today.”

He added: “We openly say no to ending the subsidization of medicine, flour and fuel. The policy of fine-tuning subsidization so that the needy can benefit can be followed.”

Diab also warned that ending subsidization will have “disastrous consequences,” adding that the bank deposits of the Lebanese “must return to them.”

“This is the responsibility of banks, the central bank and the state,” he said.