A conference held on Thursday in Stockholm for donors raised more than US$940 million in pledges of new money to reconstruct Lebanon after 33 days of Israeli bombing of the country's bridges, roads, factories and other infrastructure.
Initial official figures estimate the first phase of reconstruction at $2.5 billion. Damage includes some 150 bridges and a 15,000-tonne oil spill that polluted 140 kilometers of coastline.
The International Monetary Fund (IMF) said the damages could reach $3.5 billion or more for infrastructure alone.
At this rate, Beirut will most certainly continue to turn to international lenders and donors for help with reconstruction for a long time. And this, debt watchers say, will in turn plunge the country into greater debt.
World Bank figures show that Lebanon was already up to its neck in debt - some $22.2 billion - even before the war. For a country of only 3.5 million people, the smallest Arab nation, it is a colossal burden.
The IMF itself acknowledges that without highly concessional new financing for Lebanon, there is a real risk of the total collapse of the Lebanese economy. The institution did not mention grants or debt cancellation.
[Excerpt of an article by Emad Mekay, Inter Press Service]
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