As it happens, the IMF Board of Governors approved the allocation of $650 billion worth of Special Drawing Rights (SDR) of which Lebanon would receive about $860 million. LIMS suggested the partial use of Lebanon’s share to cover the cash card program. The possible oversight of the International Monetary Fund (IMF) would ensure better transparency in the way cash cards are distributed, thus preventing their conversion to electoral bribes. Alternatively, the IMF funds risk being spent in a perfectly transparent way, on failed policies that actually hurt the population, such as subsidies.

LIMS has been pointing out for more than a year that the subsidy program will result in nationwide shortages because fuel and medicine are sold in Lebanon at 30% of their actual cost. This discounted price provides a strong incentive to smuggling and black-market operations. Subsidized medicine disappeared from pharmacies, and patients are begging their relatives abroad to send the needed drugs. To make matters worse, the scarcity of gasoline has left residents queuing in front of gas stations for long hours every day. The diesel shortage led to electricity outages that forced all kinds of businesses to close. Without gasoline, people cannot get to work and without electricity, businesses cannot function. Subsidies are actually destroying what the economic crisis has left.
The cost of subsidies is estimated at $7 billion for 2020 and is expected to grow to $9 billion in 2021. Therefore, Lebanon is actually paying billions to keep its population from getting fuel and medicine. BdL, who finances the program, is in fact insolvent and thus using people’s dollar deposits at commercial banks for this end. Since banks’ assets are captured by BdL and being spent on subsidies, banks can only allow their clients to operate in Lebanese pound (LBP) withdrawals from their USD denominated accounts. Those LBPs are freshly printed by the central bank and translate into currency depreciation. Therefore, subsidies are not only causing shortages of fuel and medicine but are also destroying the purchasing power of the LBP and fueling hyperinflation in the prices of non-subsidized goods. LIMS urged the immediate lifting of all subsidies, so that fuel and medicine become available in the market and the economy can function again.

LIMS explained that such daily fluctuations are short-lived, while the trend of a continuously devaluating LBP remains, given the absence of reforms. All circulars, statements, and policies will not succeed in stabilizing the currency, as long as Lebanon is printing massive loads of LBPs to monetize public debt, while simultaneously depleting the foreign exchange reserves on subsidies at an alarming rate. The printed banknotes that are not covered by economic growth or FX reserves will inevitably translate into a loss of purchasing power that affects all Lebanese. 
LIMS suggested immediately lifting subsidies to stop the hemorrhaging of the remaining reserves and establishing a currency board to restore some of the lost value and purchasing power to the LBP. A currency board would strip the government from the ability to print money in a discretionary way. LIMS also argued against the potential of an international bailout to help Lebanon, as politicians would simply use the funds as bribes for the upcoming elections. Instead, Lebanon must undertake the needed reforms first, in cooperation with the IMF, the World Bank, and the international community, to stabilize the economy and restore confidence. International support would follow the reforms and not proceed them.