Naharnet Newsdesk - Paris-2 Pledges $4.2 Billion to Lebanon

Paris-2 Pledges $4.2 Billion to Lebanon

The Paris-2 conference pledged a total of $4.2 billion in financial assistance to Lebanon on Saturday. The figure was formally announced after a three-hour session of donor nations at the Elysee under the personal auspices of French President Jacques Chirac.
Saudi Arabia led the list of donors with $700 million. France and the Arab Development Fund followed with $500 apiece. The European Investment Bank came up with $350 million. Kuwait, the UAE and Malaysia pledged $300 million each.

Canada, Italy, Bahrain and Qatar contributed $200 million each, . Japan, The Arab Monetary Fund and the International Monetary fund committed themselves to $100 apiece. Belgium coughed up $70 million and Oman $50 million. There was no immediate account for the remaining $30million.

Soon after Chirac gaveled the conference into session, Premier Hariri made an emotional plea for financial help to maintain Lebanon as a stable haven of moderation in the turbulent Middle East. His speech was greeted by prolonged applause.

Hariri pleaded for long-term credit guarantees at low interests to help Lebanon deal with a spiraling public debt that will hit the $31 billion mark by the end of the year, or 18 percent of the Gross Domestic Product.

Eighteen nations, most of them represented by their Prime Ministers or foreign ministers, attended the opening session of Paris-2 as well as the European Commission and eight international financial organizations.

Hariri, who spent hundreds of hours jetting around the globe to make Paris-2 a reality, was the first to arrive at the Elysee, flanked by Finance Minister Fouad Siniora, Economy Minister Bassel Fleihan and Central Bank Governor Riad Salameh.

Chirac greeted them at the stairway of the French presidential palace. The rest of the delegations later streamed in. They included German Chancellor Gerhard Schroeder, Italian Prime Minister Silvio Berlusconi and Spanish Premier Jean-Marie Aznar.

Canadian Prime Minister Jean Chretien and his Malaysian counterpart Mahatir Mohammed were present for the opening session at 10 p.m. Beirut time. President Chirac announced the aid at a joint news conference with Hariri after the end of the conference meeting.

Chirac paid warm tribute to what he called "the formidable efforts by Lebanon to rebuild itself from the ashes of 15 years of civil war" and said the international community owed it to Lebanon to help quench its consequent staggering public debt.

Also present at the conference were the prime ministers of Belgium and Denmark. The Saudi delegation was headed by Foreign Minister Prince Saud Al Faisal. All other Gulf Nations are taking part, too.

Undersecretary of State William Burns led a U.S. delegation to the conference, dispelling some fears in Beirut that the murder of an American missionary nurse in Sidon on Thursday may reflect adversely on the American attitude towards the pro-Lebanon conference in Paris.

Lebanon had hoped for $5 billion in soft loans, credit guarantee and central bank deposits. But French officials said before the conference began that anything over $3 billion would be a sterling achievement.

Beirut, Updated 24 Nov 02, 11:55