Lebanon’s Finance Minister Yassine Jaber announced plans for a new deal with the IMF, which calls for a unified financial reform package to address the country’s economic crisis. Discussions are ongoing with key officials, and Lebanon’s commitment to reforms is crucial in securing necessary loans from the IMF. A $1 billion World Bank program is also in consideration for Lebanon’s reconstruction.
Lebanon’s Finance Minister, Yassine Jaber, announced on Wednesday that a new agreement between Lebanon and the International Monetary Fund (IMF) is imminent. This announcement followed a meeting with the IMF delegation, led by Ernesto Ramirez Rigo, who called for a comprehensive financial reform package to assist Lebanon in overcoming its ongoing financial crisis. Minister Jaber stated that Lebanon is committed to these reforms as they seek to secure loans from the IMF to revive the economy.
During discussions, President Joseph Aoun and Rigo emphasized the significance of unifying reforms to facilitate an agreement that enables Lebanon to access IMF loans. The IMF delegation planned to hold further discussions with Prime Minister Nawaf Salam, Parliament Speaker Nabih Berri, and Finance Minister Jaber regarding the specifics of the financial reform plan.
Despite the IMF delegation’s efforts, the details of the proposed reforms are still unclear, particularly as Lebanon navigates the substantial economic restructuring required in light of the severe economic losses following Israel’s attacks. Lebanon has grappled with an economic crisis since 2019 when it defaulted on its debts, resulting in the freezing of ordinary depositors’ savings within the banking system.
In 2022, Lebanon reached a draft agreement with the IMF for financial assistance, contingent upon the execution of essential reforms yet to be undertaken by the authorities. Jaber underscored the need for reforms, stating, “I expressed the Lebanese government’s determination to carry out all necessary reforms – not because anyone demanded it, but because the country itself needs these reforms.” He also mentioned presenting the government’s priorities to the IMF for the upcoming period, including appointing a central bank governor.
Looking ahead, if a new central bank governor is appointed, the IMF is expected to revisit Lebanon in early April. Prime Minister Nawaf Salam added that a program worth $1 billion, presented by the World Bank for the reconstruction of Lebanon, encompasses a $250 million loan to assist in these efforts.
In conclusion, Lebanon’s Finance Minister expressed optimism for a new IMF agreement, contingent upon the implementation of crucial financial reforms aimed at addressing the nation’s severe economic challenges. The commitment to reform is evident, as discussions with key political figures and international partners continue. These developments signal a potential pathway for Lebanon to secure funding and advance its economic recovery.
Original Source: news.az
