Shafaq News/ Iraq has decided against renewing its agreement with Lebanon to supply fuel in exchange for services, citing financial concerns, according to high-level Lebanese sources quoted by Leb Economy.

The refusal stems from the Central Bank of Lebanon's decision not to approve a new $700 million credit line required to fulfill Lebanon's obligations under the agreement. The bank's stance is reportedly due to the absence of sufficient guarantees for repayment by the Lebanese state.

Lebanese Prime Minister Najib Mikati visited Baghdad in an attempt to persuade the Iraqi government to waive Lebanon's $700 million debt from the original deal. However, his efforts were unsuccessful.

Sources indicated that Iraqi Prime Minister Mohammed Shia Al Sudani agreed to renew the agreement for an additional $700 million under the same conditions as before, without waiving the previous debt. This move effectively doubles Lebanon's financial obligations to Iraq, now totaling $1.4 billion.

The Central Bank of Lebanon has rejected the government's request to open another $700 million account to cover the services owed to Iraq in exchange for the fuel. Acting Central Bank Governor Wassim Mansouri refused, arguing that covering these costs would impose an undue financial burden on the bank, violating Lebanon's monetary laws and its decision to cease extending further loans to the state.

Concurrently, Lebanon was plunged into a nationwide blackout on Sunday following the announcement by Electricité du Liban that the last operational unit at the Zahrani power plant had shut down due to a complete depletion of gas oil reserves. The outage has left the entire country without electricity, disrupting essential services, including airports, ports, water systems, and prisons.