Lebanese parliament approves World Bank loan to help poor

BEIRUT (AP) — Lebanon’s parliament on Friday approved a $246 million loan from the World Bank that would provide cash assistance for more than 160,000 families in the small country hit by an unprecedented economic crisis and the coronavirus pandemic.

The approval came as the local currency hit a new record low on the black market, trading 11,150 Lebanese pounds to the dollar. The new crash triggered immediate protests, mostly in the country's north.

The previous day, France warned that Lebanon was running out of time before total collapse, blaming bickering politicians who for months have been unable to agree on a new government even as Lebanon slides into economic and financial abyss.

Last week, protesters closed roads around the country with burning tires for a week, after the dollar hit 10,000 pounds on the black market for the first time. The currency collapse throws more people into poverty as their purchase power declines.

The currency crash will affect recipients of the cash from the World Bank, as the money will be distributed to the 161,257 families — or about 800,000 people — in Lebanese pounds. Each of the families will get 800,000 pounds a month for one year, according to the agreement with the World Bank that calculated the dollar at 6,240 pounds.

Since Lebanon’s economic and financial crisis began in late 2019, there have been different exchange rates for the dollar in the highly-indebted country, including the official rate with about 1,500 pounds to the dollar, the black market rate, and a cash withdrawal rate from U.S. dollar accounts in local banks, with at 3,900 pounds for $1.

Using the rate of 6,240 pounds to the dollar in helping poor families means they are being short-changed, getting about 62% of what they would be getting on the black market rate.

Lawyer and anti-corruption...