Lebanon To Fund $15 Million Credit Line to Grain Importers To Alleviate Bread Shortage

Lebanon will distribute $15 million to prevent more bread shortages, but the solution is only temporary, Reuters reported, citing the country’s Economy Minister Amin Salam. The money will be used to fund a credit line of $15.3 million to grain importers in order to prop up the subsidized product. Salam said the credit will give the government a two-to-three-week breathing space during which time it will need to open a second credit line.

Meanwhile, the government is working on a $150 million agreement with the World Bank to improve food security. Lebanon is heavily reliant on food imports and pays for them in dollars. The Lebanese pound has lost more than 90% of its value since 2019.

The bread shortage has increased due to the war in Ukraine; Ukraine provides Lebanon with much of its wheat supply.