Hezbollah Disarmament
U.S. Ambassador to Turkey and Special Envoy to Syria Tom Barrack delivered a proposal to Lebanon that calls for the disarmament of all non-state actors. According to several reports, the proposal presents a “phased approach” where Hezbollah hands over its arms to the Lebanese state, and in exchange Israeli forces would fully withdraw from Lebanon and halt their strikes. The proposal also calls for financial reforms to “fight the cash economy” and for improving relations with Syria. A response to the proposal is being drafted by the three heads of government1 in coordination with Hezbollah.
Reuters reported, through three sources, that Hezbollah is considering scaling back its role as an armed movement without fully disarming. On the other hand, Aljoumhouria reported, through sources in Hezbollah and Amal, that the two parties believe the proposal is “unacceptable” in its current form. Aljadeed reported, through a source, that Hezbollah demanded that Israel fully abides by the ceasefire before a new agreement is considered, adding that they are willing to discuss a national defense strategy.
War on Lebanon
Israeli strikes targeted Shebaa, Bint Jbeil, Shaqra, Ramia, Choukine, Aita al-Shaab, Meiss El Jabal, Yohmor, and Mahmoudieh. An Israeli drone strike targeted a car on the Khalde highway near Beirut, killing one and injuring five. In total, two people were killed this week and at least ten were injured.
Israeli forces entered Lebanon several times this week and destroyed a house in Kfarkela, a bulldozer in Meiss El Jabal, and a linen factory in Meiss El Jabal that was rebuilt after the war. Israel continues to occupy five positions in southern Lebanon.
The U.S. announced new sanctions on several Hezbollah members and on an entity associated with Al-Qard Al-Hassan.
In two speeches commemorating Ashura, Hezbollah Secretary General stated that Israel and the U.S. are the parties violating the ceasefire and using aggression to put pressure on Lebanon. Kassem said that “defense does not need permission” and that Hezbollah is willing to discuss strategy with “anyone who is capable” of defense. Kassem accused the U.S. and Israel of following an approach of “either we kill you, or you surrender”, emphasizing that Hezbollah is “ready for both options”, whether that is peace or war.
Economy
The Central Bank issued a decision barring banks from transferring any “amounts from the foreign currency accounts [created] before November 17, 2019” citing the need to ensure “equal and fair treatment among all depositors.” The Association of Banks welcomed the decision, describing it as a “step towards justice,” while several civil groups, such as Depositors’ Cry, criticized it, saying it favored banks over depositors.2
According to Almodon, Qatar is considering two plans to increase Lebanon’s electricity production: either increasing fuel shipments to cover peak summer demand or building and operating a new station.
Public administration employees are on the cusp of a general strike due to low wages, with employee associations asking for an increase matching inflation since 2017.
Bank Audi has reached a settlement with the International Finance Corporation (IFC) and will pay $59 million to settle a $234 million debt.
Parliament
Parliament held a special session this week to discuss 13 draft laws and ended up approving five of them. The approved laws include a reduction in tobacco and alcohol taxes, a $250 million World Bank loan to ease the country’s electricity crisis, credit lines to support judges and public university professors, and a tax relief aimed at helping those affected by the war.
Divisions over electoral reform persist, with MPs from the Lebanese Forces, Kataeb, and independent blocs withdrawing from the aforementioned parliamentary sessions. The divisions revolve around the foreign resident voting mechanism with some blocs3 supporting adding six exclusive seats for the diaspora while others are demanding the integration of the diaspora vote with the resident vote for the 128 seats.
Legal & Security
Judge Jamal Hajjar arrested and interrogated the former Credit Bank chairman and his advisor on suspicion of forgery and embezzlement. The bank’s general manager was also arrested in a raid after she had gone into hiding following the chairman’s arrest.
Members of a “terrorist cell” that was planning “attacks on the Shiite community” were arrested, according to a security source who spoke to The National.
The Lebanese Army announced the arrest of 131 Syrian nationals this week for “illegally entering Lebanon.”
Government
The ministries of Justice and Finance announced a joint effort to audit all beneficiaries of U.S. dollar government subsidies.
Environment Minister Tamara Zein filed a lawsuit with the head of the Judicial Authority against anyone who is proven to be part of starting large fires in Akkar that destroyed large swathes of forests.
Following a meeting with Prime Minister Salam, the Ambassador of Bahrain, who currently resides in Syria, announced the reopening of the previously closed Bahrain Embassy in Lebanon.
The Health Ministry announced that kidney transplants will soon become free for citizens under 18.
President, Prime Minister, Parliament Speaker
Amal Movement, FPM (Tayyar), Hezbollah, PSP (Eshtirake)