Lebanese Ministry of Economy   Prepares    Plan to Gradually Abolish Subsidies on Bread

The Lebanese Ministry of Economy is moving to rationalize subsidies on flour for the bread industry in preparation for its complete halt.

Abolishing of subsides will automatically lead to a rise in the price of bread and is likely to double its price. The policy of supporting many commodities since the outbreak of the economic crisis in Lebanon about 3 years ago has led to the depletion of the mandatory reserve at the Banque du Liban (Lebanon Central Bank)  of hard currencies, which exacerbated the financial crisis that the country is under, and led to an excessive increase in smuggling, in light of the loose borders.

For weeks, the Lebanese have been queuing in long lines in front of the bakeries to ensure that they get one bundle of bread for each person.

According to Caretaker Economy Minister Amin Salam, 75 percent of those queuing are displaced Syrians, while 400,000 bundles of bread go daily to these displaced people, who benefit from $7 million in monthly support from the mandatory bread reserve.