Hariri rejects suggestion that Lebanon issue new foreign debt bonds

Lebanese Prime Minister Rafik Hariri reached an agreement with the economic institutions on the necessity of fixing the country's general debt, but he refused to have the government bear what the head of the Chamber of Commerce and Industry in Beirut, Adnan Al Qasar called the deterioration of the living conditions. Hariri said that the situation resulting from the civil war is getting better now. He refused the idea that Lebanon issue new foreign debt bonds.

Hariri, who has been leading the country for five years, during which he launched a major project to rebuild what the war destroyed, met with leaders of economy and industry, traders, and bankers.

Al Qasar said that there are clear indications of the deterioration of the living conditions and aggression on public property.

Hariri stated that the most important problem his government faces is the budget deficit and the increase of the public debt.

Hariri held a meeting yesterday with 19 ministers and House Speaker Nabih Berry, where they discussed new plans that aim to assure sufficient funding to realize a great number of development programs, such as helping the exiled, medical aids, supporting the resistance against Israel, in addition to educational programs.

The discussions, which continue today in the Lebanese cabinet, concern ways of collecting the money necessary to this program, and the opinions varied about what product prices should be increased. The most approved proposal was made by Prime Minister Hariri, who calculated that increasing the price of every 20 liters of gas by 5,000 Lebanese Pounds would soon permit to save the $250,000,000 necessary to let the exiled come back home.

In addition, Hariri announced to Berry his intention to propose a tax increase of of 5% on imported products, especially luxury items, in order to realize all the other ambitious plans.