Lebanese Parliament Approves Ration Cards, Replacing Subsidies

By Staff, Agencies

Lebanon's parliament Wednesday approved ration cards for the poorest to cushion the gradual collapse of subsidies due to the economic crisis.

The decision came one day after authorities hiked the price of subsidized fuel.

The government, which subsidizes key commodities including flour and medicine, has also started to gradually reduce support on other key items.

Lebanon is in the throes of an economic crisis the World Bank has described as likely one of the world's worst in modern times.

More than half the population lives below the poverty line and minimum wages are the equivalent of less than $40 a month, according to the black-market exchange rate.

Government estimates put the cost of the rationing initiative at $556 million – $300 million of which officials hope to secure through World Bank loans, and the rest of which is to come from the central bank, a government official told AFP.

Parliament speaker Nabih Berri said it would be up to the government to determine how to distribute and fund the ration cards which exclude residents who already benefit from outside assistance.

The government official, who spoke on the condition of anonymity, said half a million families would receive ration cards.

Prices for bread and subscriptions to private electricity generators are expected to rise following the increase in the cost of fuel.

Lebanon’s currency has already lost 90 percent of its value against the dollar.