Lebanese PM-designate to hold more talks in faltering bid to appoint cabinet

Credit: REUTERS/GONZALO FUENTES

Lebanese Prime Minister-designate Mustapha Adib said on Thursday he would give more time for talks about the formation of a new government as his faltering efforts raised doubts about a French initiative to lift the country out of a deep economic crisis.

Recasts after Adib statement

BEIRUT, Sept 17 (Reuters) - Lebanese Prime Minister-designate Mustapha Adib said on Thursday he would give more time for talks about the formation of a new government as his faltering efforts raised doubts about a French initiative to lift the country out of a deep economic crisis.

France has been leaning on Lebanon's sectarian politicians to form a new cabinet and embark on reforms to exit the crisis that is the worst facing the country since its 1975-1990 civil war. But a deadline of Sept. 15 that politicians had promised Paris they would meet has already been missed.

The process has been bogged down as Lebanon's dominant Shi'ite Muslim factions, the Iran-backed Hezbollah and Amal Movement, have insisted on naming Shi'ite ministers in the cabinet and said these must include the finance minister.

Political sources say Adib has been working on proposals to switch control of ministries, many of which have been held by the same factions for years, as he seeks to deliver a government of specialist ministers to deliver reforms mapped out by France.

Lebanese media reports had indicated he might step down.

But after meeting President Michel Aoun, Adib said he had agreed "to hold off a bit to give more time for consultations".

"I presented to the president the difficulties that are facing forming the government," he said. "I know full well that we do not have the luxury of time. And we count on everyone's cooperation."

Adib, a Sunni Muslim, was designated prime minister on Aug. 31 by a clear majority of Lebanese parties under French pressure. He enjoys the backing of former Prime Minister Saad al-Hariri, Lebanon's leading Sunni politician.

Parliament Speaker Nabih Berri, the Amal chief, became more insistent on naming the finance minister after Washington last week imposed sanctions on his senior aide for corruption and for enabling Hezbollah, political sources from several parties say.

The aide, Ali Hassan Khalil, is a former finance minister.

The United States imposed sanctions on Thursday on two Lebanon-based companies and one individual it said were linked to Hezbollah, according to the U.S. Treasury Department's website.

The U.S. Treasury Department blacklisted Lebanon-based Arch Consulting and Meamar Construction.

(Writing by Ellen Francis and Tom Perry; Editing by Hugh Lawson and Edmund Blair)

((thomas.perry@thomsonreuters.com; Reuters Messaging: thomas.perry.reuters.com@reuters.net))

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