Donors pledge 7.6 billion dollars for Lebanon rebuilding (Roundup)

Jan 25, 2007, 16:50 GMT

Paris - As violence continued in Lebanon, donor nations have promised some 7.6 billion dollars for the reconstruction of the country at an international conference held Thursday in Paris, French President Jacques Chirac announced.

Of that total, Saudi Arabia pledged 1.1 billion dollars, while the World Bank contributed 700 million dollars to help Lebanon pay off part of its public debt, estimated at 41 billion dollars, and to rebuild parts of the country destroyed in last summer's bombardment by Israel.

The United States, represented at the conference by Secretary of State Condeleezza Rice, released 770 million dollars, of which 220 million dollars is earmarked for military aid for the embattled government of Prime Minister Fouad Seniora.

The American aid must still be approved by Congress.

In addition, on Wednesday, during a meeting with Seniora, Chirac pledged a loan of 500 million euros (650 million dollars) at what was described as 'very advantageous terms.' In addition, the European Commission announced Wednesday that it would pledge 400 million euros at the conference.

Chirac and Seniora had hoped to raise at least 5 billion dollars during the conference, which was held two days after three people were killed and some 170 injured in Lebanon during violent nationwide protests by opposition groups, led by the radical Shiite group Hezbollah.

'Your support will be indispensable for peace in Lebanon,' Seniora told the representatives from some 40 donor nations and a number of international organizations such as the World Bank and the International Monetary Fund present at the conference.

As he spoke, violence erupted at the Arab University of Beirut between students loyal to opposing factions in Lebanon's current political crisis, leaving at least three people dead and more than 50 wounded.

Seniora also renewed his criticism of Israel, saying its attacks were 'brutal and totally unjustified' and demanded that its leaders 'realize that war brings neither peace nor security.'

The EU's foreign policy chief Javier Solana said that 'the international community needs Lebanon. Only an independent, sovereign Lebanon... can fully play its role within the international community... and participate in the stability of the region.'

Chirac opened the conference by saying, 'Financial stability is essential to Lebanon's political stability,' and described the country as 'a nation that stubbornly wants to be reborn and more than ever needs the unanimous support of the international community.'

Chirac went on to say that 'everyone knows that the stability of Lebanon is decisive for stability in the entire region.'

The conference was crucial for the survival of Seniora's government.

The Lebanese prime minister has come under intense pressure from Hezbollah to resign or form a government of national unity. Seniora has rejected both demands.

In its closing statement, conference representatives pledged full support for Seniora's proposed economic reforms, which are also being contested by Hezbollah.