Aoun, Diab call for unity as ABL announces own rescue plan

BEIRUT: President Michel Aoun urged Wednesday all Lebanese to show "unity to face the existential threat" facing Lebanon, as he hosted the heads of different Parliamentary blocs at the Baabda Presidential Palace. 

The meeting, which was boycotted by a slew of political opponents, aimed at discussing the government’s economic rescue plan which was presented last week. 

“The rescue that we are aiming for is not the responsibility of one political side," Aoun said, adding that "getting out of this dark tunnel that we are passing through is the responsibility of all."

Aoun stressed that the government's plan was tackled from an economic perspective free of political intentions.  

“I call for approaching the plan from that respect,” he added.

Aoun added that the government’s plan aims at protecting those most at risk from the economic collapse after the national currency lost more than 50 percent of its value since October. 

“In addition to the external financial support that is required, the success of the government’s plan ... requires national unity and deep awareness on what threatens our existence and being and the identity of Lebanon,” Aoun said.

Prime Minister Hassan Diab echoed Aoun's comments, calling on political factions to cooperate in good faith to "save Lebanese from a crisis threatening their livelihoods."

“We present the plan before you today because it is not the property of the government,” Diab added, appealing to both political parties and banks to put an end to the bickering.

“This plan is an opportunity to negotiate with creditors and for dialogue with the International Monetary Fund," he added, a day after the IMF's managing director Kristalina Georgieva threw its support behind the plan. 

Lebanon is at a crossroads, Diab said, signaling the many challenges including the coronavirus outbreak that the government has had to overcome. 

The small Mediterranean country defaulted on its debt for the first time in its history earlier this week after amassing more than $60 billion in losses, according to the government.

Lebanon had started negotiations to restructure its sovereign debt two weeks ago, Finance Minister Ghazi Wazni said, arguing that negotiations with the International Monetary Fund would restore confidence in the country.

The blocs of former Prime Minister Saad Hariri, former Prime Minister Najib Mikati, the Kataeb Party and the Marada Movement leader Sleiman Frangieh all boycotted the meeting. 

Samir Geagea, the leader of the Lebanese Forces, personally attended the meeting despite his political disagreements with the Hezbollah-led government. 

The economic rescue plan aims to reduce its ratio of debt to economic output below 100% from its current 178% and reform its ailing power sector.

The plan also seeks to overhaul Lebanon's banking sector, which along with the central bank, has amassed losses of $69 billion according to the government. Experts, however, put the losses at $80 billion.

Banks will be asked to propose their own restructuring plans, with healthier banks being able to recapitalize themselves without bailing in large depositors. 

The Association of Banks has taken offense at the plan, accusing the government of placing the blame at the feet of the banking sector. 

Talking to Reuters, ABL Chairman Salim Sfeir said that banks are working on another plan that would preserve some of their capital rather than writing it all off as outlined in the government program. 

The plan would be ready within 10 days, he said, arguing that "the government plan has completely neglected the banking sector,"