Last update - 00:00 02/01/2007
Lebanon PM unveils reform plan to seek foreign financial assistance
By The Associated Press
Lebanon is planning sweeping economic reforms as part of its bid to attract foreign financial assistance - much needed after the summer war deepened Lebanon's economic woes.
Lebanese Prime Minister Fuad Siniora outlined the main points of the program to journalists Tuesday, explaining that his cabinet will discuss and endorse the plan ahead of submitting it to a meeting of international donors in Paris January 25.
"This may be the last chance for Lebanon and a gateway for rescuing the country from total collapse," Saniora said, urging his opponents to support the government's efforts to revive the economy.
The embattled premier was surrounded by several Cabinet ministers as he spoke at his office, which has been surrounded by a security cordon to keep at bay sit-in protesters who have been demanding his resignation since December 1.
The plan envisages a privatization program directed primarily at increasing investment and reducing public debt. Siniora put Lebanon's debt at $40 billion - twice its GDP.
But he indicated that planned steps include unpopular measures such as an increase in the value added tax - currently 10 percent - and fuel price hikes.
The steps would be implemented in 2008.
The cabinet is scheduled to meet Thursday to endorse the plan. Fighting between Israel and Lebanon-based Hezbollah guerrillas in July and August 2006 badly damaged Lebanon's infrastructure. Commerce and investment remain below prewar levels.