BEIRUT: Lebanon can ration $2 billion in reserves left for subsidies to last six more months, the caretaker prime minister said on Tuesday, as the country’s financial meltdown raises fears of rising hunger.
Lebanon’s worst crisis since its 1975-1990 civil war has crashed the currency and sent inflation soaring. A looming end to subsidies has triggered UN warnings of “social catastrophe”.
In an interview with Reuters, Hassan Diab also said Western officials had told him there was “an international decision” not to help Lebanon because of Iran-backed Hezbollah’s role in the country.
Diab said he only learned there was $2 billion in foreign reserves left for subsidies from TV comments Central Bank Governor Salameh made last week.
“I had asked him several times. Nothing official was received.” Diab said the amount was higher than anticipated and would last “six months if we apply rationing”.
He hoped for agreement by February on a plan to cut subsidy spending while supporting the poor.
A central bank spokesman did not respond to a request for comment.
Diab, who took office a year ago with Hezbollah’s backing, resigned over public fury at the huge port explosion that killed 200 people and ravaged much of the capital in August. His cabinet has since served in a caretaker role.
Along with three ex-ministers, the premier has faced charges of negligence over the explosion but has since declined to be questioned, accusing the investigating judge of overstepping his powers.
The US FBI said in October it had reached no firm conclusion about what caused the explosion.
Diab’s office quoted him earlier as saying the FBI had revealed that only 500 tonnes of ammonium nitrate had detonated out of the 2,750 tonnes stored unsafely at the port.
“Where did the (rest) go?” he said without answering his question.
The FBI delined to comment. An advisor from Diab’s office added on Wednesday that he was not citing first-hand knowledge and had not seen any FBI report himself. Reuters could not independently verify its contents.