The IMF asserts that a unified financial reform plan is critical for Lebanon’s economic recovery and access to foreign aid. During discussions with Lebanese officials, the delegation highlighted the necessity of comprehensive reforms, particularly in banking and fiscal policies, amidst ongoing negotiations with Israel to address ceasefire and border issues.
On Wednesday, the head of the IMF’s mission to Lebanon, Ernesto Ramirez Rigo, stated that a unified financial reform plan is essential for Lebanon to address its economic challenges and secure foreign funding. During a meeting with President Joseph Aoun, Rigo underscored Lebanon’s commitment to advancing necessary reforms amid a prolonged economic crisis stemming from mismanagement, corruption, and substantial debt since 2019.
Rigo emphasized the importance of the proposed financial plan receiving approval from all relevant parties to ensure its success in parliament. The implementation of these reforms is expected to facilitate international aid, including grants from countries with strong bilateral ties. He noted that the successful adoption of the plan would serve as an “IMF seal of approval” to unlock financial assistance.
The IMF delegation also pointed out the critical need for Lebanon to return to core financial principles, particularly in the areas of bank restructuring and the review of banking secrecy laws. Ongoing discussions include specialized technical meetings with experts from the IMF and the World Bank alongside Lebanese financial officials, aiming to bolster public financial transparency and implement comprehensive reforms.
Lebanese Finance Minister Yassine Jaber acknowledged the discussions with the IMF delegation, highlighting the priority of appointing a new governor for Banque du Liban to facilitate collaboration with the IMF. He noted that the issue of frozen bank deposits would be tackled incrementally, as he lacks authority over the banking sector itself.
The World Bank’s Vice President for the Middle East and North Africa, Ousmane Dione, previously urged the Lebanese government to enact reforms to enhance credibility, ensure transparency, and improve the investment climate. The IMF team is scheduled to meet with the technical committee at the Association of Banks, focusing on Lebanon’s cash economy, exchange market performance, and banking restrictions.
In addition to financial discussions, Lebanon is engaging in diplomatic efforts relating to the ceasefire agreement between Hezbollah and Israel, resulting in the recent release of four Lebanese prisoners. This diplomatic maneuvering has been celebrated by Hezbollah supporters, who credit these achievements to negotiation rather than military force. The U.S. administration has been mediating between Lebanon and Israel to reinforce the ceasefire, with ongoing negotiations concerning land border disputes in progress.
Reports indicate that six points remain unresolved since the Blue Line’s establishment in 2000 and that the Israeli military presence in certain occupied Lebanese areas has intensified. The U.S. and French embassies, along with UNIFIL, confirmed their commitment to maintaining regular meetings to ensure compliance with the ceasefire.
Israeli officials conveyed their interest in achieving normalization with Lebanon, asserting that discussions will encompass mutual border claims between the two nations. The overarching aim is to sustain momentum toward a comprehensive agreement that addresses both countries’ concerns and fosters stability in the region.
Ultimately, a cohesive financial reform plan is crucial for Lebanon’s economic recovery and to secure international support. The IMF and World Bank are emphasizing the need for comprehensive reforms to restore financial stability and transparency. Concurrently, Lebanon’s diplomatic initiatives regarding the ceasefire and border negotiations with Israel underscore the complexity of the nation’s challenges. Addressing both financial and geopolitical issues appears essential for future stability and development.
Original Source: www.arabnews.com
