Summary of the interview of his Excellency Mr. Issam Fares to the CNBC (Arabic)


In an interview delivered to the CNBC (Arabic.), the vice president of the Lebanese government Mr. Issam Fares answered some questions that preoccupy the public opinion. Concerning the description of the government as the best it can be, Mr. Fares said he wished to see all the political forces join that government however one of the parties refused to participate and it has the right to do so. The government includes high cultural and moral competences and showed them in the fields in which it works. We shouldn’t forget that the government duration is linked to a short period of several months that doesn’t exceed the number of the fingers of a hand.

Concerning the 2005 budget ,he declared that there is a plan to accomplish the budget within the constitutional delay, he also added that the government will take the positive points of the last government’s project (this project stayed mere ink on paper as it didn’t proceed from the cabinet) and will be added to it some modifications dictated by the present situation. As for the expenditures based on the rule of provisional twelve we won’t have recourse to it unless there is a delay in the ratification of the budget in the cabinet or in the parliament. Mr. Fares insisted that it is of Lebanon’s interest to please the IMF and the International funds and that the government is doing it’s best in that direction.


Regarding the “reform paper” presented by Lebanon in Paris, thanks to which he received a loan of four billion dollars Mr. Fares thanked the states and funds that participated and helped the Lebanese banks fulfilling their renowned and estimated job. Mr. Fares, as we know had some observations concerning our capacity to implement all what was mentioned in “Paris paper”, especially what was related to the privatization. What is important is that Lebanon is honoring all his engagements in his public and private sectors, and is always careful on his external reputation.
Concerning the titrisation what means changing a debt for another Mr. Fares assured that he is more for a “Beirut I” than “Paris III”. Showing that the majority of the external debt comes from the Lebanese banks that are active partners of the state in that project.

Mr. Fares talked also about the public indebtedness, he is optimistic as things are going the right way and that we accomplished a lot towards equilibrium. The value added tax (VAT) was effective as it outreached the estimations with an augmentation of 50% and the debt’s interest diminished in a salient way and the phone revenues increased of 300 million dollars.

Mr. Fares assured that the government was working earnestly to solve economical and financial problems endured and this of course within it’s possibility and the constitutional time given to it. Regarding the 1559 resolution and using his international relations Mr. Fares said that the personal relations with important countries have a limited impact as these countries build their policy on their essential interests. We raised some reserve concerning the timing of the execution and the way it would be executed from one hand and on the other hand we thought that amendment of the constitution and the prolongation of the president Lahoud term are of internal concern as they occurred within the constitution.

Concerning the presence of non Lebanese forces on the Lebanese soil, I repeat that no one wish to see a foreign soldier in Lebanon or a single gun in other hands than the state’s. But this issue is linked to the timing and to the coordination with our partners or else we would shake the security and stability as well as our economy and finance.
We shall keep in mind that no one cares about us as much as we do. Syria is not willing to stay forever as well as the resistance and the armed Palestinian. How many resolutions stayed mere ink on paper especially the 194, 242 and 338 resolutions.

Mr. Fares also brought up the Syrian Lebanese relation assuring that it was governed by the Taëf agreement and the treaty of cooperation and coordination between both countries. We have to respect these treaties as well as the international legality.

Mr. Fares raised too the subject of the law concerning the prolongation of the banks merger and declared that he wasn’t against the project but he raised some reserves on some points wanting them to be modified in the light of experience and experiment, and to avoid the drawbacks that proceeded from practice and especially the necessity of accounting and pursuing the responsible of the mistakes of the merged banks and to put norms followed by all without any discretion if any merger occurs.

Mr. Fares declared that he supported the project and that he was waiting to study it in the cabinet in accordance with these remarks. He added that the monetary policy is laid down in coordination with the government and the direction of the central bank of Lebanon.  Concerning what has been said about Washington freezing its help to Lebanon that reaches the 35 million dollars if Lebanon doesn’t sign the quality protection treaty Fares said : on the contrary it has been decided to diminish the amount help of 235 thousands and there is no link between the help and the treaty.
Mr. Fares assured that Lebanon is respecting it’s engagement and is honoring the treaties he signed.

Mr. Fares also talked about investing and employing the Lebanese gold, he said that with the gold present situation we couldn’t take risks and that this policy is the right one when we consider the raise of the gold price and when we feel it’s going to continue increasing. Our biggest reserve is in gold and if we took risks with it the price paid would have been very high in war time. Let us not forget that a special law was brought out on that issue that prohibited to touch the gold reserve only after referring to the parliament.