Lebanese PM Hariri resigns as crisis turns violent – World

Lebanese Prime Minister Saad al-Hariri said he would submit his resignation on Tuesday, stating that he had reached a "dead end" while trying to resolve a crisis unleashed by major protests against Lebanon's ruling elite.

The Lebanese prime minister addressed the nation in a televised speech after a mafia loyal to the Hezbollah and Amal groups attacked and destroyed a protest camp established by anti-government protesters in Beirut.

Lebanon has been paralyzed by the wave of unprecedented protests against unbridled corruption of the political class that collectively has led to the worst economic crisis since the civil war of 1975-90.

“For 13 days, the Lebanese people have waited for a decision for a political solution that stops the deterioration (of the economy). And I have tried, during this period, to find a way out to hear people's voice, ”Hariri said in his speech.

“It is time that we had a great shock to face the crisis. I go to the palace of Baabda (presidential) to present the resignation of the government. For all partners in political life, our responsibility today is how we protect Lebanon and revive its economy. ”

In downtown Beirut, men dressed in black wielding sticks and pipes destroyed the protest camp that has been the focal point of demonstrations across the country against the entrenched elite.

The turmoil has worsened Lebanon's acute economic crisis, with financial tensions leading to a shortage of foreign exchange and a weakening of the linked Lebanese pound. Lebanese government bonds fell into turmoil.

The demonstration of strength in Beirut came after Hezbollah leader Sayyed Hassan Nasrallah said last week that roads closed by protesters should be reopened and suggested that protesters were financed by their foreign enemies and implemented their agenda.

It is the most serious fight on the streets of Beirut since 2008, when Hezbollah fighters took control of the capital in a brief eruption of armed conflict with Lebanese adversaries loyal to Hariri.

Camp of protest on fire

Smoke rose when some of the protest tents were set on fire by Hezbollah and Amal supporters, who deployed in the center of the capital cursing anti-government protesters.

"With our blood and our lives we offer ourselves as a sacrifice for you, Nabih," they chanted in reference to the president of Parliament, Nabih Berri, head of the Amal Movement. "We hear your call, we hear your call, Nasrallah," they sang.

Security forces did not initially intervene to stop the assault, in which protesters were beaten with sticks and were seen asking for help while running, witnesses said. Finally, tear gas was released to disperse the crowds.

Lebanese Pound under pressure

Protests nationwide since October 17 have paralyzed Lebanon at a time of worsening financial crisis: the banks closed for the tenth day on Tuesday along with schools and businesses.

Hariri's resignation would challenge the powerful Hezbollah. Nasrallah has said twice that he was against that step, citing the risk of a dangerous vacuum.

Under the constitution, Hariri's cabinet would remain a caretaker until a new government is formed.

Last week, Hariri sought to calm popular discontent through a batch of reform measures agreed with other groups in his coalition government, including Hezbollah, to, among other things, fight corruption and delayed economic reforms.

But without immediate measures to enact these measures, they did not placate the protesters, whose demands include the resignation of their coalition government.

A senior official from outside the Hariri Future Party had told him Reuters Earlier on Tuesday, the prime minister "probably" would announce a government resignation on Tuesday. The report weighed on the bonds of the Lebanese dollar.

The governor of the central bank, Riad Salameh, called on Monday for a solution to the crisis in just a few days to restore confidence and avoid a future economic crisis.

A black market for US dollars has emerged in the last month or so. Three currency traders said a dollar cost 1,800 pounds on Tuesday, weakening from the 1,700 and 1,740 levels quoted on Monday.

The official fixed rate is 1,507.5 pounds per dollar. Salameh said Reuters On Monday the central bank would maintain the fixed rate when banks reopen.

"Even if protesters leave the streets, the real problem they face is what they are going to do with the devaluation of the pound," said Toufic Gaspard, an economist who worked as an advisor to the IMF and the Lebanese finance minister.

"A large majority of Lebanese income is in the Lebanese pound, their savings are in the Lebanese pound and their pension is in Lebanese, and it is certain that it has already begun to devalue," he said.