The IMF and World Bank are considering tying reconstruction funds for Lebanon to the normalization of relations with Israel and the disarmament of Hezbollah. Financial aid is contingent upon Lebanon enacting significant reforms, with the EU also demanding banking system restructuring. Estimates indicate a need of $6-7 billion for reconstruction, with Hezbollah heavily investing in recovery efforts amidst ongoing tensions with Israel.
The International Monetary Fund (IMF) and the World Bank are reportedly considering linking reconstruction aid for Lebanon to the normalization of its relations with Israel as well as the disarmament of Hezbollah. A report from the Beirut-based Al Akhbar newspaper indicated that Kristalina Georgieva, the head of the IMF, informed the acting governor of Lebanon’s central bank, Wassim Mansouri, that international funding will be contingent on specific political and financial reforms within a defined timeframe.
Furthermore, informed sources have noted that these required steps correspond with anticipated political pressures centered around normalization and disarmament. This report follows comments by U.S. Special Envoy Steve Witkoff, who suggested potential normalization agreements between Lebanon, Syria, and Israel, echoing arrangements established during President Donald Trump’s administration.
In early January, Lebanese Finance Minister Yassin Jaber revealed that the World Bank is poised to implement a preliminary plan for a $1 billion reconstruction project in response to the devastation inflicted by the recent Israeli military actions. The bank’s approval of the fund is expected during its Executive Board meeting on March 25, contingent upon Lebanon’s implementation of requisite reforms as stipulated by Western powers.
The European Union has also linked its financial assistance to Lebanon with the condition of restructuring the country’s banking system, thereby delaying the disbursement of €500 million as part of a collective agreement aimed at reducing the refugee influx to Europe. In light of the ongoing reconstruction challenges, it is estimated that Lebanon requires between $6 to $7 billion to restore its infrastructure following the destruction caused by Israeli aggression.
Hezbollah has reportedly contributed significantly towards recovery efforts, allocating an estimated $650 million towards housing and restoration projects in southern Beirut and surrounding areas. Despite ongoing tensions and ceasefire violations by Israel, many residents in affected southern Lebanese villages have begun returning to their homes, demonstrating resilience in the face of adversity.
Hezbollah expanded its support for Palestinians amidst the recent Israeli onslaught in Gaza, resulting in a series of retaliatory strikes against Israeli forces. Following extensive casualties and failure to achieve strategic objectives, Israel agreed to a ceasefire with Hezbollah on November 27, 2024, after suffering severe impacts during the conflict, which had resulted in over 4,000 deaths in Lebanon.
In summary, the IMF and World Bank are reportedly connecting Lebanon’s access to reconstruction funds with the normalization of relations with Israel and Hezbollah’s disarmament. Parallel pressures from the U.S. and the EU highlight significant financial dependencies and the necessity for policy reforms in Lebanon. Hezbollah’s substantial contributions to rebuilding efforts and the broader implications of regional normalization efforts underscore the complex socio-political landscape Lebanon navigates amidst reconstruction and conflict recovery efforts.
Original Source: www.presstv.ir
