$2.7 billion is big money. It’s about 15% of Lebanon’s GDP. The
entire economy takes close to two months to generate that much
output. It would have substantially reduced the bloated debt, boosted
investors’ confidence and paved the way for privatization. All the
cabinet had to do was say ‘yes’. Instead of deciding on selling licenses
to LibanCell and Cellis, they dilly-dallied and passed the buck.
Procrastination seems to be the theme of this administration, when
action is what’s really needed. Numerous reforms have been on the
table collecting dust. The telecom privatization law has been with the
council of ministers for three months. The decree to allow Solidere
to develop the souqs has been keeping it company. The value-added
tax (VAT) law is sitting in the parliament’s lap. When it will
be debated and actually passed is anyone’s guess, especially since the
elections are approaching and getting re-elected is the priority. And whatever
happened to administrative and judicial reform, not to mention
the anti-corruption campaign?
Since the government couldn’t accept the cellular offer, Standard &
Poor’s made them an offer it can’t refuse. The international rating
agency has threatened to downgrade Lebanon in the fourth quarter
unless it meets a number of criteria, including hitting its deficit targets,
resolving the dispute with LibanCell and Cellis before October and
passing the VAT law before the elections in August. If the government
can’t reach its own deadline, maybe it can reach someone else’s.
