Lebanon's Diab looks to Iran for aid as Gulf quiet on assistance

Prime minister met Iranian Parliament Speaker Ali Larijani on Tuesday

epa08223946 Lebanese Prime Minister Hassan Diab (R) meets with Iranian Parliament Speaker Ali Larijani (C) at the government palace in Beirut, Lebanon, 17 February 2020. Larijani arrived in Lebanon after a visit in Syria.  EPA/NABIL MOUNZER
Powered by automated translation

As he formed the new Lebanese government in January, Prime Minister Hassan Diab said his first visit would be to Arab Gulf state as he sought international help to solve the country’s financial crisis.

But no Gulf state offered major aid and on Monday Mr Diab met Iranian Parliamentary Speaker, Ali Larijani, who said Tehran “expresses our full readiness to support but we do not force this on anyone".

Gulf states had long channelled funds to Beirut but have grown alarmed by the rising clout of Iran's ally Hezbollah.

Lebanon's rich Gulf neighbours now appear loath to help it out of an unprecedented economic and financial crisis.

The heavily armed Hezbollah backed Mr Diab's cabinet after efforts failed to strike a deal with Saad Hariri, a traditional western ally who stayed out of the new government.

Over the weekend a senior Arab official told The National at the Munich Security Conference that Gulf countries "have been very clear that it is important for the new Lebanese government to show its independence and to stay away from regional polarisation".

“You cannot come and expect money from the Arab Gulf then Hezbollah the next day completely targets the Gulf.”

Lebanon is grappling with a public debt at 166 per cent of the GDP, one of the highest ratios in the world.

At the end of November, it hit $89.5bn.

A delegation from the International Monetary Fund was due to Mr Diab on Tuesday as he sought assistance with a rescue plan.

The IMF delegation is expected to provide an assessment of the measures needed to rebuild the economy but has not been asked to provide financial assistance.

The IMF experts will begin consultations with Lebanon's government in Beirut on Thursday, a source said. it formally requested the Fund's technical help last week.

Mohanad Hage Ali, a fellow at the Carnegie Middle East Centre, said the visit by Iran’s Speaker may not help to bolster the new Lebanese government's image.

"It's not very helpful at this stage as Lebanon seeks foreign aid and a bailout and the help of Gulf Arab states. This is the not message you want to send," Mr Ali said.

An Arab diplomat in the Gulf said only Qatar had invited Mr Diab to visit so far. "No other government in the Gulf will invite him," the diplomat said.

Lebanese President Michel Aoun's office said he received an invitation to Tehran during his meeting with Mr Larijani on Monday.

Hezbollah leader Hassan Nasrallah said on Sunday that the Cabinet was not "Hezbollah's government", and that opponents who called it that were damaging Lebanon's ties to foreign states and making it harder to combat the crisis.