Remarks by U.S. Ambassador Dorothy Shea from the Ministry of Energy

Good morning, and thank you, Your Excellency, Mr. Minister, for the really positive discussion that we had this morning.  I am encouraged when I hear about the continued progress on these regional energy deals.  It is a long and complicated process, and I would urge the audiences out there to not believe the naysayers who would have you believe that there is no progress.  You know, I just reviewed some very lengthy documents, contractual documents, that require hours of painstaking review by lawyers on the part of multiple parties, and I am really appreciative to the advice that the minister and his team have been getting from the World Bank,  because they are bringing to the forefront the best practices in the international arena on such arrangements.  We are relying on their very good advice, when it comes to things like the overall plan for which the Council of Ministers gave their preliminary approval some weeks ago, and we're looking forward to continued progress on that.  Also the tariff structures, and other arrangements to make sure that this sector, your electricity sector is going to be run as efficiently as possible so that the end users, your consumers, your Lebanese people, your hospitals, your other institutions can get the benefit of sustainable electricity.  This is not an easy exercise, especially not right now, given all the other complications in the world and the disruptions to the world energy markets because of the Russian invasion of Ukraine–which is deplorable for other reasons.  But I want to acknowledge the ongoing communications between the Minister and his counterparts, and the other stakeholders in these deals. They are ongoing and they are productive and positive, and we look forward to a successful outcome.  Hang in there.  We have not given up hope and you shouldn't either.  Thank you.

By U.S. Embassy Beirut | 15 March, 2022 | 

U.S. Department of the Treasury Media Note

U.S. DEPARTMENT OF THE TREASURY

Office of Public Affairs

For Immediate Release

MEDIA ADVISORY

March 2, 2022

A senior delegation from the U.S. Department of the Treasury concluded a three-day visit to Lebanon on March 2.  The delegation met with members of the Lebanese government, civil society, and the banking sector to reiterate the U.S. government's commitment to stand with the Lebanese people during this time of economic turmoil.  The delegation encouraged the work of the Lebanese government to develop a possible International Monetary Fund (IMF) supported program, and it noted that such a program could help restore much needed confidence in the economic system.  The delegation raised the crippling nature of systemic corruption and identified specific areas critical to address the lack of transparency and accountability in its meetings with the public and private sector, emphasizing that addressing corruption in Lebanon is a pre-requisite to tackling the governance and economic crisis.  The delegation also urged government and bank officials to ensure that any financial recovery plan maximizes the returns to Lebanese depositors, especially those with relatively smaller accounts, while emphasizing the need for swift action toward improving the financial system.

The delegation emphasized the need for the Government of Lebanon to implement deep, meaningful reforms prior to the elections.  The delegation highlighted U.S.-designated Al Qard Al Hassan as one example of an unregulated, pseudo-financial institution that abuses its Ministry of Interior-granted NGO license and provides cover to Hizballah's financial activity, jeopardizing the credibility of the Lebanese financial system.  The delegation also raised concerns about abuses within the banking system by members of the political and economic elite.  They emphasized the need to make serious efforts to investigate those abuses, particularly by the Banque du Liban and the Special Investigation Commission.  They pressed for the appropriate authorities to conduct investigations and perform due diligence on any related transactions.  The delegation also discussed relevant preparations for Lebanon's upcoming Middle East and North Africa Financial Action Task Force (MENAFATF) mutual evaluation.  The Treasury officials also thanked the Lebanese government for its strong stance opposing the unjustified, unprovoked, and premeditated invasion of Ukraine.