The IMF and World Bank may condition reconstruction aid to Lebanon on the normalization of relations with Israel and the disarmament of Hezbollah. Key steps for funding access are outlined, coinciding with political pressure. Lebanon faces significant financial needs amid ongoing geopolitical challenges and Hezbollah’s involvement in reconstruction efforts.
The International Monetary Fund (IMF) and the World Bank are reportedly looking to condition reconstruction funding for Lebanon on the country’s normalization of relations with Israel and the disarmament of Hezbollah. In a recent meeting, IMF Chief Kristalina Georgieva communicated to Lebanon’s central bank acting governor, Wassim Mansouri, that access to international funds will involve specified steps, a timeline, and clear objectives.
The Beirut-based newspaper Al Akhbar indicated that these required steps are likely to align with political pressures labeled as ‘normalization’ and ‘disarmament.’ This development follows speculations from U.S. Special Envoy to the Middle East, Steve Witkoff, suggesting Lebanon and Syria may be included in normalization agreements previously established by President Donald Trump with some Arab nations.
Recently, Lebanese Finance Minister Yassin Jaber disclosed that the World Bank is poised to approve a preliminary $1 billion reconstruction plan if Lebanon implements necessary political and financial reforms. The World Bank’s Executive Board is slated to review this proposal during a meeting on March 25.
Furthermore, the European Union has similarly linked funding for Lebanon to the restructuring of its banking system, thereby delaying the disbursement of €500 million in aid that is part of a 2024 agreement aimed at managing refugee inflows into Europe. New estimates suggest that Lebanon requires approximately $6-7 billion to rehabilitate its infrastructure damaged by Israeli aggression.
Notably, Hezbollah has contributed substantially to the reconstruction, with an estimated $650 million earmarked for rebuilding efforts in southern Beirut and surrounding regions. Despite challenges, residents in certain southern Lebanese villages have begun returning to their homes, signifying resilience amid ongoing tensions.
In the wake of a large-scale Israeli military offensive starting on October 7, 2023, Hezbollah committed to supporting Palestinians in Gaza, launching multiple retaliatory strikes. Following significant casualties and military setbacks, Israel agreed to a ceasefire with Hezbollah on November 27, 2024, after failing to meet its objectives despite extensive violence.
In summary, the IMF and World Bank’s potential linkage of aid to Lebanon’s normalization with Israel and Hezbollah’s disarmament highlights the complex geopolitical dynamics affecting the country’s reconstruction efforts. As Lebanon grapples with the need for extensive rebuilding and necessary reforms, the roles of major international financial institutions and political negotiations remain pivotal. The resilience of the Lebanese people amid these challenges and Hezbollah’s contributions to recovery efforts signify ongoing regional tensions and the quest for stability.
Original Source: www.presstv.ir
