Pentagon official warns of Hezbollah threat to Lebanon’s stability amid financial crisis

The panel heard how Hezbollah is a threat to Lebanese security as the country struggles to survive a financial meltdown. (AFP/File)
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Updated 01 June 2021
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Pentagon official warns of Hezbollah threat to Lebanon’s stability amid financial crisis

LONDON: US military officials warned on Tuesday of the threat posed by Hezbollah to Lebanon’s stability amid the economic crisis wracking the country.

The concerns were raised in a discussion on Washington’s defense cooperation with Lebanon.
The US has provided support for more than 15 years to the Lebanese Armed Forces (LAF), but the increasing influence of the terrorist-designated Hezbollah in Lebanese politics has strained the partnership.

“Hezbollah’s terrorist and illicit activities threaten Lebanon’s security, stability, and sovereignty,” Dana Stroul, deputy assistant secretary of defense for the Middle East, told a conference hosted by the Middle East Institute. “It (Hezbollah) is more concerned with its own interests than what is best for the Lebanese people.”
The financial and political crisis in Lebanon has seen the value of the local currency plunge, wiping out people’s savings and salaries.

The panel heard how the crash has placed increasing pressure on members of the LAF, who are now struggling to make ends meet.

“The administration remains keenly interested in Lebanon’s stability, and as a result we are committed to working with the LAF to find ways to bolster them in this time of crisis,” Stroul added.


Egypt receives €1bn from EU as reward for economic reforms progress

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Egypt receives €1bn from EU as reward for economic reforms progress

  • Payment is the 2nd installment of a €5bn macro-financial assistance loan package agreed in 2024
  • European Commission President Ursula von der Leyen says it reflects Cairo’s efforts to build a stronger economy

LONDON: Egypt received €1 billion ($1.16 billion) from the EU on Thursday. The payment, designed to help boost the country’s financial stability, is part of a €5 billion macro-financial assistance package agreed in 2024.

The transfer was made after Egypt implemented a range of economic reforms, including improvements to public financial management and the foreign exchange market, the European Commission said.

The money is intended to help Egypt cover part of its financing needs, ensure economic stability, and support the country's economic reform agenda.

The €5 billion in macro-financial assistance, part of a broader €7.4 billion package, comes in the form of concessional loans that Egypt will have 35 years to repay. Thursday’s payment was the second, after an initial €1 billion was disbursed in December 2024. The remaining €3 billion is expected to be paid in two further installments this year.

Rania Al-Mashat, Egypt’s minister of planning, economic development and international cooperation, said the funding reflected the depth of Egyptian-European relations.

The financing package is directly linked to Egypt’s program of reforms designed to unlock the country’s economic potential, she added.

European Commission President Ursula von der Leyen said the latest payment “shows both the EU’s commitment to this partnership and Egypt’s efforts to build a stronger and greener economy.”

The commission said Egypt had fulfilled all the required conditions for the disbursement of funds, including that it remains on track with the requirements of an International Monetary Fund program. The IMF last month said it had reached an agreement with Egypt for reviews of that program, which could unlock about $2.5 billion.

Egypt secured an expanded $8 billion IMF package in March 2024, contingent on the country carrying out economic reforms.

The Egyptian economy has stabilized following a financial crisis in 2023 and 2024 that led to the devaluation of the Egyptian pound, a severe shortage of foreign exchange, and record-high inflation.