Economics
Lebanon to Reduce Subsidies as Cash Runs Out, Finance Chief Says
- Government plans tax on banks, wealth to boost revenues
- Currency collapse, inflation spark anger in the streets
A demonstrator holds government subsidized bread during a protest in Beirut, on March 2.
Photographer: Hasan Shaaban/BloombergThis article is for subscribers only.
Lebanon is scaling back food subsidies and will gradually raise gasoline prices to save dwindling foreign reserves, the caretaker finance minister said.
The central bank has $16 billion left in foreign reserves, of which only $1 billion to $1.5 billion can be used to fund subsidies, enough for two to three months, Ghazi Wazni said in an interview. Reserves have halved from about $30 billion a year ago.