Beirut, June 24 (BNA) Najib Mikati appointed Minister of the Cabinet on Thursday, urging pessimistic politicians to put aside differences to secure an agreement with the International Monetary Fund, which he said was the only chance to save the country from financial collapse.
Facing a politically difficult road to agreeing on a new government, the billionaire billionaire who led three previous governments said Lebanon had no time to “drown in the conditions and demands” of groups competing for ministerial positions.
“We are facing the challenge of either a complete collapse or a gradual salvation,” Mikati said, referring to the IMF agreement that promises $3 billion in support, on the condition of reforms long-delayed by Lebanon’s political elite.
Now in its third year, the financial meltdown has plunged the currency more than 90%, spread poverty, paralyzed the financial system, and froze depositors of their savings, in Lebanon’s most destabilizing crisis since the 1975-90 civil war.
Donor countries want Lebanon to enact reforms to address the root causes of the crisis, including decades of government waste and corruption, before aid is released.
Mikati, a Sunni Muslim as required by Lebanon’s sectarian system, said, “We have wasted enough time and lost many opportunities for support from brotherly and friendly countries whose position has always been clear: Help yourselves so that we can help you.”
Mikati, who hails from the northern city of Tripoli, remains in charge of the caretaker government until a new government is formed.
He urged Parliament to approve laws referred to it by the previous government that would pave the way for a final agreement with the International Monetary Fund, including amendments to bank secrecy rules and capital controls.
He was nominated by 54 out of 128 deputies in parliament, including the Iran-backed Shiite Hezbollah, in consultations convened by President Michel Aoun, head of the Maronite Christian state.
But with deep divisions among Lebanon’s ruling elite, it is widely believed that Mikati will struggle to form a government, a process that could drag on for months as factions battle for ministerial positions and beyond.
Analysts and politicians expect the government formation process to be further complicated by the looming conflict over who will succeed Aoun, the head of state allied with Hezbollah, when his term ends on October 31.
broken beryllium
Parliament – which elects the new president – appeared deeply divided after last month’s general election. Hezbollah and its allies lost their majority, the reform-minded newcomers made a strong showing and the Saudi-allied Christian Lebanese Forces party took seats.
Several lawmakers, including Hezbollah, have called for the urgent formation of the government.
“We hope that we will not fall into the logic that there will be no government before a president,” said Sami Gemayel, head of the Christian Phalange Party. “No one can hold out for another four months given the situation we are in.”
Reflecting the new landscape, Miqat received about 20 fewer votes than when he was appointed prime minister in September.
Forty-six MPs did not mention anyone for the position, while 25 voted for Nawaf Salam, Lebanon’s former ambassador to the United Nations and now a judge at the International Court of Justice.
A deal with the International Monetary Fund is widely seen as a gateway to easing the financial crisis, but the political and financial elite remain divided over details, including how to share the estimated $70 billion in losses in the financial system.