IMF and World Bank Link Aid for Lebanon to Normalization with Israel and Hezbollah Disarmament

The IMF and World Bank may condition aid for Lebanon on the normalization with Israel and Hezbollah’s disarmament. A $1 billion reconstruction plan requires political reforms to access funds. Hezbollah has initiated significant local rebuilding efforts following Israeli aggression, while the group supports Palestinians amid ongoing regional conflicts.

The International Monetary Fund (IMF) and the World Bank are reportedly conditioning Lebanon’s access to reconstruction funds on the normalization of relations with Israel and the disarmament of Hezbollah. IMF Managing Director Kristalina Georgieva conveyed to Lebanon’s acting central bank governor, Wassim Mansouri, that funding will depend on specific steps outlined within a designated timeframe. This strategic linkage has been interpreted as a response to anticipated political pressures aimed at promoting normalization and disarmament practices.

Following a recent violent conflict from Israel, Lebanese officials announced plans for a $1 billion reconstruction initiative led by the World Bank. During an impending Executive Board meeting on March 25, the World Bank is poised to approve financial assistance contingent upon Lebanon’s implementation of critical political and economic reforms. The European Union has also stipulated reforms regarding Lebanon’s banking system as a prerequisite for €500 million in aid established as part of a broader 2024 agreement with Brussels.

Estimates indicate that Lebanon requires approximately $6-7 billion to restore its infrastructure and clear debris resulting from the Israeli aggressions. Hezbollah has reportedly contributed significantly, investing an estimated $650 million specifically for housing and restoration efforts in southern Beirut and adjoining regions. Amid ongoing conflicts, the group remains committed to rebuilding efforts as affirmed by its leader, Hassan Nasrallah.

In light of the recent escalation against Gaza, Hezbollah has extended support, initiating retaliatory strikes against Israeli targets. Following intense confrontations, Hezbollah compelled Israel to accept a ceasefire on November 27, 2024, after the latter suffered considerable casualties without attaining its strategic objectives while claiming over 4,000 Lebanese lives.

In summary, the IMF and World Bank’s potential funding for Lebanon is deeply intertwined with the normalization of its ties with Israel and the disarmament of Hezbollah. While reconstruction efforts are likely to commence, they hinge upon Lebanon undertaking necessary reforms under pressure from international stakeholders. Hezbollah continues to play a crucial role in funding local initiatives, amidst heightened tensions in the region.

Original Source: www.presstv.ir