Lebanon’s central bank won’t pay for subsidised medicines

Lebanon’s central bank said it will not eat into its mandatory foreign exchange reserves to cover the cost of subsidised medical goods.

Lebanon’s central bank said on Thursday that a system for importing subsidised medical goods could not be sustained without using its mandatory reserves and asked the relevant authorities to find a solution to the problem. Lebanon, which is in the throes of a financial crisis that is threatening its stability, has been subsidising fuel, wheat, medicine and other basic goods since last year. In a statement issued after caretaker health minister Hamad Hasan said he had visited the bank asking for the release of funds for essential medicines to no avail, the central bank – also known as the Banque du Liban – said it would not dip into its mandatory reserves to cover the $1.3bn cost of the subsidised medical supplies.