Lebanese politicians are watching on as the economy collapses, the senior UN official in Lebanon said on Wednesday, rebuking a political elite that has failed to form a government as the country sinks deeper into economic and financial crisis.
UN special coordinator for Lebanon Jan Kubis tweeted: “Another day of confusion around the formation of a government, amidst the increasingly angry protests and free-falling economy.”
“Politicians, don’t blame the people, blame yourselves for this dangerous chaos,” he added.
On Tuesday, protesters railing against the political elite returned to the streets to decry the delay in the formation of a government and deteriorating economic situation.
The protests turned violent when demonstrators outside the central bank in Beirut clashed with security forces.
Kubis noted that central bank (BDL) governor Riad Salameh had requested extraordinary powers to manage the economy -- an apparent reference to his request for extra authorities to regulate controls being implemented by commercial banks.
“Lebanon is truly unique -- the BDL Governor requesting extraordinary powers to at least somehow manage the economy while those responsible watch it collapsing. Incredible,” he added.
The demonstrators accuse Salameh of financial policies that have worsened Lebanon's liquidity crunch.
The country is facing its worst economic crisis in decades. The local currency has lost over 60% of its value in just the past few weeks, while sources of foreign currency have dried up. Meanwhile, banks have imposed informal capital controls limiting withdrawal of dollars and foreign transfers in the country, which relies heavily on imports of basic goods.
Panic has set in among residents who fear their deposits are in danger. Protests have taken place inside commercial banks over the last few weeks as depositors tried to access their accounts.
President Michel Aoun said Tuesday that “obstacles” had prevented the formation of a new government which was expected last week.
He said Lebanon was currently paying the price for 30 years of wrong financial policies.
Hassan Diab was designated as prime minister in mid-December. He has so far failed to form an emergency government amid political divisions and jockeying for power.
