Lebanon’s Finance Minister Optimistic About New IMF Agreement to Revive Economy

Lebanon’s Finance Minister Yassine Jaber expressed confidence in securing a new IMF deal to aid the country’s economy, following meetings with the IMF delegation and national leaders. The government plans to implement critical financial reforms necessary for accessing IMF loans. Ongoing discussions are set to continue with IMF officials, and a World Bank program for reconstruction has also been proposed.

On Wednesday, Lebanon’s Finance Minister Yassine Jaber expressed optimism regarding a new deal with the International Monetary Fund (IMF) aimed at aiding the nation’s struggling economy. This statement followed a meeting with an IMF delegation led by Ernesto Ramirez Rigo, who emphasized the need for a comprehensive financial reform package to help Lebanon navigate its ongoing financial crisis.

During discussions, Lebanese President Joseph Aoun agreed to the IMF’s call for reforms, underscoring Lebanon’s commitment to implement these changes. These reforms are viewed as crucial for establishing a final agreement that would allow Lebanon to access IMF loans, thereby facilitating economic recovery.

The IMF delegation is scheduled to engage with Prime Minister Nawaf Salam and Parliament Speaker Nabih Berri, alongside Jaber, to elaborate on the specifics of the economic reform plan and necessary actions. Though the final reform plan is still under development, it is expected that the restructuring of Lebanon’s economy will be extensive, exacerbated by significant economic losses from the conflict with Israel.

Lebanon has been ensnared in an economic crisis since 2019, marked by the collapse of its financial system due to unsustainable state debts. This turmoil led to a sovereign default in 2020 and froze access to savings for ordinary depositors. In 2022, a draft agreement for financial assistance with the IMF was reached, contingent on the implementation of essential reforms, which remain unfulfilled.

“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,” Jaber stated. He noted that the government had laid out its priorities for upcoming reforms, including the appointment of a new central bank governor.

Jaber mentioned that another IMF visit is anticipated in early April contingent upon the appointment of this central bank governor. He further indicated that discussions with the IMF would continue on Thursday. In addition, Prime Minister Nawaf Salam revealed that the World Bank has proposed a $1 billion reconstruction program for Lebanon, which comprises a $250 million loan.

In conclusion, Lebanon’s finance minister is hopeful for a new IMF deal which would support the country’s economic revival through essential reforms. Commitment from the Lebanese government and ongoing discussions with the IMF and World Bank signify a determined approach to addressing the economic crisis that has plagued Lebanon since 2019. The success of these initiatives hinges on the implementation of reforms and the appointment of a central bank governor.

Original Source: news.az