Former Prime Minister Hoss attacks the $800 million regional development plan
Lebanon, Economics, 9/26/1997

Former Lebanese Prime Minister Salim Hoss on September 25 attacked the 800 million US dollar regional development plan, asserting that Lebanon's debt was "unhealthy and a cause for great concern."

Hoss described the plan as "a declaration of failure" for the government and pointed out that the government had not included a proposal to raise taxes and increase borrowing in its policy statement a year ago.

He said the government had resorted to the "easy way out" by levying new taxes after failing to meet its financial objectives.

While acknowledging the need to boost rural development," Hoss asked, "Why did the government remember them only now?" He said that the government should have adopted a comprehensive development plan.

"Instead, the government went ahead with its reconstruction projects with a total disregard for the priorities of parliament," he said.

The Beirut MP noted that the government has already spent 500 million US dollars on returning the displaced, in addition to the 200 million US dollars spent by Solidere, "But we all know that only 20 percent of the displaced have returned to their villages. So what would the additional 200 million US dollars do and where would it go?"

"They pledged over 3 Billion US dollars in normal and soft loans and donations. Where are they ?" he asked.

Hoss also criticized the government for having issued more treasury bills than needed. He asserted that raising interest rates to encourage investing in treasury bills had further contributed to the recession.

Hoss questioned the wisdom behind stabilizing the national currency at an artificial level instead of stabilizing it at its real value. He said that leaving the currency at its real value would have boosted exports and contributed to the reduction of the trade deficit.

He asked for an alternative plan.

Previous Stories:
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  The 1998 budget will be discussed tomorrow   (9/23/1997)

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