Lebanon’s Finance Minister Yassine Jaber announced a potential new deal with the IMF aimed at reforming the country’s struggling economy. Following discussions with IMF officials, President Joseph Aoun reaffirmed Lebanon’s commitment to the proposed reforms necessary for economic revitalization. The IMF delegation will continue discussions with key Lebanese leaders, highlighting the urgency for financial restructuring amid ongoing economic crises.
Yassine Jaber, Lebanon’s Finance Minister, expressed optimism regarding a newly established agreement between Lebanon and the International Monetary Fund (IMF) after a recent meeting with an IMF delegation. This statement was released by the finance ministry following discussions with Lebanese President Joseph Aoun, where IMF mission head Ernesto Ramirez Rigo emphasized the urgency of implementing a unified financial reform package to address Lebanon’s ongoing financial crisis.
President Aoun concurred with Rigo, reaffirming Lebanon’s commitment to proceeding with the proposed reforms aimed at facilitating a final agreement that would unlock potential IMF loans. This financial assistance is crucial for reviving Lebanon’s struggling economy, which has faced severe challenges since the onset of a crisis in 2019 when the financial system collapsed, leading to a sovereign default in 2020.
The IMF delegation is scheduled to engage with Prime Minister Nawaf Salam and Parliament Speaker Nabih Berri, among others, to deliberate the specifics of the economic recovery plan. While the exact details of the reform package remain undefined, officials recognize the extensive restructuring required to restore economic stability in light of the significant economic losses exacerbated by recent regional conflicts.
In 2022, Lebanon arrived at a draft agreement with the IMF contingent on the implementation of necessary reforms, which are yet to be realized. Finance Minister Jaber emphasized the determination of the Lebanese government to undertake vital reforms independently, 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.”
Additionally, Jaber indicated that the government has presented its key reform priorities to the IMF, such as appointing a new central bank governor. He mentioned that the IMF plans to revisit Lebanon in early April, contingent upon this appointment. Furthermore, Prime Minister Salam noted that the World Bank has proposed a $1 billion reconstruction programme, which includes a $250 million loan.
In summary, the engagement between Lebanon’s government and the IMF highlights a critical step toward economic recovery in Lebanon, marked by a commitment to implement necessary reforms. The visit by the IMF delegation signifies ongoing discussions that could lead to significant financial support. Given the current economic landscape, including potential assistance from the World Bank, there is cautious optimism for Lebanon’s financial future.
Original Source: news.az
