The $15 billion hit from the devastating Beirut explosion will be a gut-punch to Lebanon's hobbled economy

• Officials in Lebanon estimated it would cost $15 billion to fix the damage from the Beirut explosion on August 4, The Washington Post reported.
• At least 25,000 homes have been damaged to the point they're not inhabitable.
• The explosion killed more than 180 people and wounded over 6,000 people.
• The damage from the explosion comes as Lebanon is reeling from a terrible economic crisis that has significantly devalued its currency.
• The country is also under a two-week lockdown after coronavirus cases surged.

While the exact damage of the explosion in the port of Beirut earlier this month is not exactly known yet, officials estimated it would cost $15 billion to fix, The Washington Post reported.

At least 25,000 homes have been damaged so badly they're no longer able to be lived in. And the explosion is just another calamity that Lebanon, with a population of a little more than 6 million people, is facing — including the coronavirus pandemic and an already struggling economy.

Matias Meier, Lebanon's International Rescue Committee Director, told Insider that 30,000 people lost their homes either partially or completely.

According to The Post, there are a number of challenges to rebuilding the property that has been damaged. The Lebanese lira was devalued by the economic crisis. Additionally, banks are placing "draconian" limitations on withdrawals even from bank accounts that have the money.

Additionally, even those who have insurance can't get a payout until the cause of the explosion is determined after a government investigation. Damage by war or acts of terrorism isn't covered at all.

The explosion killed more than 180 people and wounded over 6,000 people; it also destroyed four hospitals, the port, and many buildings.

The blast was caused after more than 2,750 metric tons of ammonium nitrate that were stored at a warehouse where it ignited.

Windows were shattered, roofs were blown off of homes, buildings collapsed, and the impact even went through sewers and vents to destroy plumbing.

Samer Bolbol, a Beirut resident, told Insider before the explosion that people were already feeling
"hopeless" because of the economic situation.

Bolbol explained that most people, even if they were considered middle class couldn't even afford to have their tires fixed if they were to get flat. Most people he said make the equivalent of somewhere between $60 or $80 a month, and the price of most goods is high because they're usually imported.

"Everything is coming in... you need to pay US dollars. So it's becoming extremely expensive locally for people to buy this stuff," Bolbol said.

Another resident Sarah, who did not want her last name used, told Insider that most people were struggling to get by as it is, and things like savings were not existent.

"I know that Lebanese people don't really save money. Like we can't afford to have savings for later. We just spend everything we have on necessities," she said.

She said that the situation has caused many of the country's young residents to consider emigrating abroad.

"The youth are mostly looking to leave," Sarah said. "If you ask around there are very few people who would say, 'I want to stay here,' because we feel that there is no future for us, and there are no new opportunities. But it's also hard to do because there's a global crisis happening and people aren't looking to hire foreigners."

Meier said that the IRC is mostly working with programs they already have in place, in particular cash assistance to help residents with their various needs.

"And this is a program that aims at identifying those most vulnerable and giving them emergency cash so that they can decide what is most useful for them," he said.

He explained the program is really helpful compared to other aid models, because not everyone may need a particular service or item that is being given, but with cash, individuals are able to prioritize what their needs are.

Meier added that the organization has short-term and long-term goals to address the current crisis including filling gaps when it comes to education support and healthcare support.

The Post reported that residents aren't expecting help from the bankrupt government to restore their homes and that foreign aid has mostly focused on medicine and food.

About a week after the explosion, Lebanon's cabinet resigned, but President Michel Aoun asked Prime Minister Hassan to stay in the post until a new government can be formed.

Maha Yahya, director of the Carnegie Middle East Center in Beirut described the situation to The Wall Street Journal: "We're in a free fall, into the abyss frankly. If we don't get a government in place quickly and they begin to provide some sort of a road map for getting out of this abyss, the only way is down."

Meier said while he expects local authorities to allow the organization to continue to provide the assistance he's is slightly concerned that a two-week country-wide lockdown, which was placed on the country after coronavirus cases surged, could slow down their relief efforts.

• Read more:
• 'We're in a free fall, into the abyss frankly,' Lebanon struggles to find new political leadership after cabinet resigns following Beirut explosion
• 'A lab coat is white, my wedding dress is white:' The woman from a viral video of a bridal shoot interrupted by the Beirut explosion was a doctor who rushed to tend to wounded victims still in her wedding dress
• Children in Beirut lost access to their cancer treatment after their hospital was destroyed in the explosion
• COVID-19 cases in Beirut are climbing after the devastating explosion there killed nearly 200 people and injured thousands