Lebanon central bank says sells $3bn in Eurobonds

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Reuters -- BEIRUT: Lebanon’s central bank said on Tuesday it sold $3.022 billion of Eurobonds, more than three times the $1 billion it planned to place with demand from local investors high. The central bank, which this month said it intended to sell $2 billion of Eurobonds over the coming year, said it planned no further sales of Eurobonds from its portfolio in 2018. Tuesday’s sale was of paper maturing between 2028 and 2034 and yielding from 7 to 8.25 percent. Settlement is on Wednesday, it said. The Lebanese government completed a $5.5 billion debt swap with the central bank on May 18, issuing it with Eurobonds in exchange for Lebanese pound T-Bills. The ministry said the swap secured its foreign currency financing needs until the end of 2018 and also strengthened the central bank’s dollar reserves. A similar $1.7 billion swap was also carried out in November 2017. After the two swaps and the sale, the central bank said it held around $4.7 billion in Eurobonds, representing just over 8 percent of its dollar assets. Lebanon is the world’s third most indebted nation after Japan and Greece, with a debt-to-GDP ratio of more than 150 percent. The International Monetary Fund has said Lebanon’s debt trajectory is unsustainable and the government needs to take immediate action to boost growth and reduce its budget deficit.

Saudi Arabia Denies Macron's Charge It Held Lebanese PM Captive

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RIYADH (REUTERS) - Saudi Arabia's Foreign Ministry denied French President Emmanuel Macron's assertion that the kingdom held Lebanese Prime Minister Saad al-Hariri captive last November, official Saudi media reported on Tuesday. In an interview with broadcaster BFM TV last week, Macron claimed credit for heading off war in Lebanon, which was plunged into crisis after Hariri resigned while in Saudi Arabia, saying he feared assassination and criticizing the Saudis' regional rival Iran and its Lebanese ally Hezbollah. Sources close to Hariri have said Saudi Arabia had concluded that the prime minister, a long-time Saudi ally, had to go because he was unwilling to confront Hezbollah. After international intervention, including by Macron, Hariri was able to leave the kingdom and eventually rescinded his resignation. Lebanese officials accused the Saudis at the time of holding Hariri hostage. Riyadh, like Hariri, denied he was ever held against his will. The Saudi Foreign Ministry statement on Tuesday called Macron's comments "untrue" and said the kingdom would continue to support Lebanon's stability and security. "All the evidence confirms that what is pulling Lebanon and the region toward instability is Iran and its tools like the Hezbollah terrorist militia..." the statement said. Saudi Arabia and Iran are locked in a decades-old struggle for regional influence, which plays out in armed conflicts and political disputes including in Lebanon, Syria, Iraq and Yemen.

France had nurtured new links with Saudi Arabia and other Gulf Arab states in recent years due to its tough stance on Iran in nuclear negotiations, and the broad similarity of their policies on conflicts across the Middle East. However, Saudi Crown Prince Mohammed bin Salman’s uncompromising efforts to counter Iran’s growing influence in the Middle East are sometimes perceived as reckless in Paris. Macron dined with Hariri and Prince Mohammed in Paris in April after a conference to rally international support for an investment program to boost the Lebanese economy. Hariri, who visited Riyadh in February for the first time since the November crisis, is working to form a new coalition after a May 6 parliamentary election which strengthened his rival Hezbollah and its political allies. They won just over half the seats in parliament, while Hariri lost over a third of his seats. Under Lebanon's sectarian power-sharing system, though, he remains the frontrunner to form the next government. (Reporting By Stephen Kalin; Editing by Raissa Kasolowsky) Copyright 2018 Thomson Reuters.

Russian jets 'intercept' Israeli planes over Lebanon, claim reports

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By middleeasteye.net -- Russian fighter jets intercepted Israeli warplanes over Lebanese airspace early on Monday morning, according to local outlets. Reports claimed that two Israeli F-16 jets were challenged by Russian Sukhoi Su-34 jets over Lebanese airspace. Israeli and Russian officials did not confirm the incident took place. Videos circulated online showed Russian planes flying over Lebanon. The clips, however, did not show any Israeli jets. The Russian jets may have been participating in a routine training exercise before intercepting the Israeli warplanes, according to Israeli newspaper Hadashot. This latest episode marks the first time in months that Russian planes had entered Lebanese airspace from Syria, according to Al-Masdar news. Israeli jets often fly over Lebanon conducting reconnaissance missions. Lebanon, which considers Israel an enemy state, often complains about its southern neighbour violating its airspace.

Israel in recent weeks has conducted air strikes on military bases in Syria thought to contain Iranian troops or fighters belonging to the Lebanese group Hezbollah. Iran and Hezbollah are fighting in Syria on the side of President Bashar al-Assad. Occasionally missiles used in such strikes are fired by Israeli jets from Lebanese airspace. Last week, Israeli air force commander Amikam Norkin showed visiting air force officers a photograph of the F-35 stealth fighter flying over the Lebanese capital of Beirut. Foreign policy circles are viewing the image as a tacit warning against the Iranian-backed Hezbollah. Israeli Prime Minister Benjamin Netanyahu earlier this month said Moscow would not limit Israel's operations in the region. Both Russia and Israel set up a mechanism in September 2015 to avoid any misunderstanding in light of Moscow's heavy military presence inside Syria. However, officials from both Moscow and Tel Aviv do not inform each other on their operational plans. “Cooperating is not the right term. We do not coordinate [with Russia]. It’s about deconfliction and security measures, so they don’t harm us and we don’t harm them,” a senior officer told the Times of Israel.

Lebanese Prime Minister Begins Consultations to Form Cabinet

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by albawaba.com -- Prime Minister-designate Saad Hariri is expected to begin, Monday the one-day unbinding consultations with the parliamentary blocs and deputies at the parliament in Nejmeh Square, in a bid to form the new government. Media reports said the various political parties are eager for an “expedited” formation of a “national unity government” able of confronting the “danger facing Lebanon's economic and financial system,” al-Joumhouria daily reported. Although political parties have reportedly shown eagerness to facilitate the formation process, but they have also reflected their demands regarding portfolios and shares in the new Cabinet.

The Progressive Socialist Party (of Walid Jumblat) is demanding the allocation of all three Druze Seats to the PSP, keeping the Lebanese Democratic Party head MP Talal Arslan out of the government. The PSP argue that they have kept a place for Arslan on their electoral list during the parliamentary elections, but he chose instead to strike an alliance with the Free Patriotic Movement. Another obstacle that could be facing the formation is the dispute between the Free Patriotic Movement and the Lebanese Forces over the Christian shares and portfolios. Furthermore, the daily said, Hariri “will not enter into details during his consultations so as not to commit himself to anything in advance, but rather to listen more than to talk.” Meanwhile “a kind of resentment is lingering among Sunni circles because of attempts made by Shiite and Christian parties to control the role of the PM-designate. Circles close to Hariri have advised him to draw clear lines for his jurisdictions, mainly that the Sunni situation bears no more jabs particularly after the outcome of the parliamentary election,” according to the daily.

by annahar - Hariri held talks with representatives of the different parliamentary blocs to try and pave the way for a smooth transition into a new Cabinet following the country’s first parliamentary elections in nine years earlier this month. The Free Patriotic Movement and Lebanese Forces have been trading barbs ever since the conclusion of the elections, with Foreign Minister and FPM leader Gebran Bassil demanding that his bloc of 29 MPs be granted a sizable portion of the upcoming Cabinet. Bassil also called for his bloc to be granted either the Ministry of Finance or Interior, which have been reserved for Shiites and Sunnis in recent years. “We have been deprived of being allocated the Interior or Finances Ministries for years,” he said, adding that “it's about time we get either one.”

The Lebanese Forces, who won 15 seats, have also been asking for a significant chunk of Cabinet posts, a demand that Bassil has constantly rebuked. LF MP Georges Adwan maintained that his party should be represented in the Cabinet similarly to the President’s share, who customarily picks a group of his close allies to prominent posts. He also called for his party and the FPM, the two main Christian parties at the moment to equally share posts “the same way as Amal and Hezbollah share theirs.” Another hindering block to the swift formation of the Cabinet is the tug and pull expected to take place between the two Druze rivals, Walid Jumblatt and Talal Arslan.

MP Arslan has requested that his bloc be allocated at least one Ministry, while Jumblatt, who heads the Progressive Socialist Party, has strongly demanded that his party solely picks the three Druze ministerial posts up for grabs, leaving Arslan out of the equation. The Lebanese Democratic Party leader, however, through his alliance with the FPM, is expected to put up a fierce fight after Bassil turned over three of his MPs to form a bloc led by Arslan. Hezbollah on the other hand, have requested that their party be allocated service ministries. Future Movement leader Saad Hariri retained his post as Lebanon’s premier last week after rallying 111 votes out of 128 from lawmakers across the political spectrum, saying that "everyone is working towards bettering the economy and strengthening state institutions.” Aoun issued a decree Thursday designating the caretaker PM as the new premier, following a day of binding parliamentary consultations.

VIDEO: People try Lebanese Arak for the first time!

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by Rabih K from lebaneseexaminer.com -- Have you ever wondered how your white friends would react to drinking Arak? The producers at Buzzfeed have answered that question with a YouTube video showing people trying Arak for the first time!

The reactions included:

“I’m feeling a buzz.”

“This can be dangerous.”

“The strongest drink I’ve ever had.”

“This is the prime drink you can sneak into a music festival. Just say it’s like fancy water.”

While the Arak was not poured into its traditional glass, most of the people who tried it, liked it! “This right here is everything I want in a drink — it’s easy to go down, it’s alcoholic as hell and it’s refreshing,” one guy said.

Tension Between Aoun's Bloc and Lebanese Forces Could Disrupt Formation of Hariri Gov't

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by the dailystar.com.lb -- The rift between the Free Patriotic Movement and the Lebanese Forces appeared to have widened over the weekend, with officials from both sides engaging in a backhanded Twitter debate. The issue began with an ambiguous Friday tweet from caretaker Information Minister Melhem Riachi that was interpreted by many to have been directed at caretaker Foreign Minister Gebran Bassil, who heads the FPM. “A stubborn [person] thought that he can do whatever he wants, get whatever he wants, monopolize everything to him and doesn’t even share bread with his siblings,” the LF politician wrote. His tweet sparked a backlash from some FPM officials, including Bassil. The FPM head seemed to interpret Riachi’s tweet as a continuation of recent accusations by the LF that there have been attempts to isolate the party from major political posts and obstruct its chances of getting key ministries in the upcoming government. “They have started to resort to [claims of] isolation, in order to call for sympathy and make political gains,” Bassil said in a tweet Saturday. Those LF complaints took a new turn after last week’s Parliament session, held to elect a speaker, deputy speaker and other members of the secretariat.

LF MP Fadi Saad, who was running to be one of two Parliament secretaries, reportedly withdrew after he was made aware of alleged attempts to isolate the LF. Former LF MP Antoine Zahra was a secretary in the previous Parliament. But the FPM’s Alain Aoun and Progressive Socialist Party MP Marwan Hamadeh ended up taking the seats in last week’s election. It has also been reported that the LF is asking to head key ministries given that its parliamentary bloc now consists of 15 MPs, a major gain from its eight-seat presence in the previous Parliament. The LF is in particular seeking to retain its control over the deputy prime ministership. But it seems that the FPM is now vying for the post as well. “There is no isolation, everyone should be satisfied with the size of their representation and they will be represented. Their demands, meetings, complaints and nagging will not benefit them,” Bassil added.

Caretaker Justice Minister Salim Jreissati, affiliated to the FPM, was more direct in his tweet. “To the Information Minister [Riachi], with all honesty, search for a stubborn person and you will find him under the ceiling of your house,” he said. But Riachi expressed surprised over the FPM reactions, writing on Twitter Saturday: “It is weird that a tweet that was unrelated [to domestic politics] was interpreted as an domestic [message]. It is really very weird.” The LF and FPM were once foes, but an understanding between LF leader Samir Geagea and FPM founder Michel Aoun brought Lebanon’s two main Christian parties together. Signed in 2016, the agreement paved the way for Aoun to be elected as president later that year. But the relationship between the two has remained rocky over their different approaches to key issues in government, including how to resolve the country’s electricity crisis. This article has been adapted from its original source. The Daily Star

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