Cabinet Convenes to Discuss Agenda, Economic Reform Plan

The government convened in a regular meeting at Baabda Presidential Palace to discuss nine items on its agenda, mainly a draft economic reform plan to rescue Lebanon’s collapsing economy and reform its banking sector.

Before the meeting began, President Michel Aoun and PM Hassan Diab held a closed-door meeting where discussions focused on the latest developments in the country, said the National News Agency.

Lebanon is in the throes of its worst economic crisis since the 1975-1990 civil war.

The Lebanese pound has lost half of its value on the black market, consumer prices have skyrocketed and unemployment is on the rise at a time when the entire country is on lockdown due to virus fears.

Making matters worse, foreign currency reserves have plummeted amid a grinding liquidity crunch, forcing the cash-strapped government in March to default on its sovereign debt for the first time.

Prime Minister Hassan Diab's cabinet, nominated in January to tackle a financial meltdown and unprecedented anti-government protests, has pledged a far-reaching reform plan to address the crisis as it seeks to enter restructuring negotiations with creditors.

But the coronavirus pandemic has added to the country's difficulties, complicating reform efforts.