LEBANON: Saudi Arabia as sugar daddy
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Recent Lebanese media reports claim that Saudi Arabia plans to deposit $1 billion in Lebanon’s central bank to bolster the economy.
The reports, as yet unconfirmed, have raised eyebrows in the Middle East. Some say any such deposit would merely be an act of political solidarity with the Sunni Arab-led government, which is locked in a political conflict with the Shiite Muslim-led opposition. They added that unless the money was injected into the market, it would only increase the government’s longevity without helping Lebanon’s stagnant economy.
But other economists say the move would boost the country’s foreign currency reserves and trust in the country’s finances. Lebanon struggles under a debt burden of about $40 billion.
Iran, Syria, France, Saudi Arabia and the United States all vie for power and influence in Lebanon using their proxies. One commentator on the website of the right-wing Lebanese Forces suggested everyone take their marbles and go home so that the Lebanese can get their house in order:
Actually, it would be even better if the [Saudi Arabia], Iran, the U.S., the [European Union], in fact, anyone meddling into our affairs, to put $1 billion each but not in the Central Bank, instead into the World Bank and in gold bullion. The Lebanese government must not be allowed to touch the aid but should show good performance over its handling of the economy, since its currency would then be shored up.
— Raed Rafei in Beirut and Borzou Daragahi in Los Angeles