Berri Says Delay in Govt. Formation Accelerates ‘Economic Bankruptcy’

Speaker Nabih Berri said on Saturday that protest-hit Lebanon faces the risk of “economic and financial bankruptcy” if the formation of a new government is not accelerated amid an unprecedented economic crisis gripping the country, al-Joumhouria daily reported.

“After the designation (of PM Hassan Diab) the main efforts must focus on forming a rescue government to salvage the stifling economic and financial crisis,” said Berri in remarks to the daily.

He warned that Lebanon faces a major risk if the formation is delayed further. “We are inevitably heading to economic and financial bankruptcy if we do not accelerate the formation of a government that rushes to take the necessary measures and reforms," he said.

Prime Minister Saad Hariri resigned on October 29, two week into nationwide protests demanding an overhaul of Lebanon’s entire political class.

Diab’s designation on Thursday was met with dismay. Protesters who say he has the support of Hizbullah rallied and blockaded roads with burning car tyres to protest his nomination.

Over the past two months, the Lebanese pound, officially pegged to the US dollar, has lost around 30 percent on the black market, while many companies have slashed wages and laid off staff.

Diab himself suggested a timeframe of four to six weeks after consultations were due to begin on Saturday.