Lebanon uprising: Financial, fuel, electricity and medicine crises escalate despite banks urging calm

Lebanon is beset not only by the economic crisis that in part sparked this year's unprecedented anti-government protests but also by escalating fuel, medicine and electricity crises.

The failure of the country's political elite, who have drawn much ire from protesters, to stem the tide of such crises continues to fuel the nationwide demonstrations which began in protest against a proposed tax on WhatsApp calls but have since evolved into an anti-sectarian, anti-corruption uprising.

Lebanese bankers and government officials on Saturday attempted to assuage worries over the economy, urging citizens not to "panic" over the security of their funds.

Banks across the country were closed for the first two weeks of demonstrations. Branches reopened at the start of this month but a rush to withdraw funds and the rapid devaluation of the Lebanese currency have prompted banks to impose capital controls that have further crippled financial security for many in the country.

For two decades, the Lebanese pound has been pegged to the US dollar, with both currencies used interchangeably in daily life.

Lebanon already faced a dollar liquidity shortage before the onset of mass protests. Despite government promises to resolve the issue, the crisis has in fact worsened.

The increasing demand for the dollar, with banks largely refusing to allow withdrawals of the currency, has seen a 30 percent devaluation of the Lebanese pound on the black market, trading at 1,900 to the dollar.

At the same time as the public is gripped with anxiety over liquidity, many in the country find themselves unable to access basic goods.

Fuel shortage

According to Fadi Abu Shakra, a representative for the union of Lebanese fuel distributors, around 60 percent of the country's petrol stations have been closed for business, with those still opening struggling to meet demand as fuel supplies are depleted.

A man drives past a closed petrol station [Getty]

The remaining amount of fuel in the country will only be enough for two days supply, Abu Shakra claimed in a statement to Turkey's state news agency Anadolu.

"Companies will not be able to import more fuel because of the refusal of banks to open credit lines in dollars," he explained.  

While banks initially agreed to ease imports by providing dollars and a fixed exchange rate, lenders went back on their promises after the resignation of Prime Minister Saad al-Hariri.

'Health catastrophy'

The currency crisis is also threatening a shortage in vital medical equipment, threatening what some have called a "health catastrophy".

"Patients may start dying because of the lack of filters, for example," Slyman Haroun of the Hospitals Syndicate said on Friday at a press conference broadcast by Al-Jazeera. "Our stocks won't last more than a month. The government must pay its dues to the hospitals right away and banks should ease transactions so we can pay importers."

Haroun has requested the government pay pending bills to hospitals and doctors totalling more than $1 billion, in addition to banks facilitating imports of medical supplies.

If not, "hospitals will as a warning for a single day on Friday, November 15, stop receiving all patients except emergency cases" including for dialysis and chemotherapy, he said according to AFP.