IMF and World Bank Link Aid for Lebanon to Relations with Israel and Hezbollah Disarmament
The IMF and World Bank plan to tie reconstruction aid for Lebanon to political conditions, including normalizing relations with Israel and disarming Hezbollah. Reports indicate that upcoming financial support hinges on specific reforms and actions from Lebanon as it recovers from the conflict. Estimates reveal a significant funding need for infrastructure repair following Israeli aggression, while Hezbollah has provided substantial aid in restoration efforts.
The International Monetary Fund (IMF) and the World Bank are considering linking reconstruction aid for Lebanon to the normalization of diplomatic relations with Israel and the disarmament of Hezbollah. As reported by the Beirut-based newspaper Al Akhbar, IMF chief Kristalina Georgieva conveyed to Lebanon’s acting central bank governor, Wassim Mansouri, that accessing international funding will depend on specific actions taken within designated timelines.
Sources suggest that these actions are influenced by anticipated political pressures centered on the themes of normalization and disarmament. This development follows comments from U.S. Special Envoy to the Middle East, Steve Witkoff, indicating that Lebanon and Syria might enter normalization agreements previously negotiated by President Trump with other Arab states.
Earlier this month, Lebanese Finance Minister Yassin Jaber announced that a preliminary plan has been drafted by the World Bank for a $1 billion reconstruction initiative in response to the destructive Israeli military operations. The World Bank is expected to approve funding pending the implementation of financial and political reforms by Lebanon, with an Executive Board meeting scheduled for March 25.
The European Union has similarly conditioned its financial support on Lebanon restructuring its banking system, delaying €500 million in aid critical to a 2024 agreement designed to mitigate refugee flows into Europe. Estimates suggest that Lebanon requires approximately $6 to $7 billion to restore infrastructure damaged by Israeli aggression, while Hezbollah has reportedly invested around $650 million for housing and restoration efforts in southern Lebanon.
Hezbollah has also positioned itself as supportive of Palestinians in Gaza amidst ongoing hostilities, responding with various retaliatory strikes following significant Israeli attacks that commenced on October 7, 2023. A ceasefire was eventually accepted by Israel on November 27, 2024, following substantial military losses and unmet strategic objectives, despite casualties exceeding 4,000 in Lebanon during the conflict.
In summary, the IMF and World Bank are poised to link financial aid for Lebanon to specific conditions regarding normalization with Israel and the disarmament of Hezbollah. Amidst necessary reconstruction efforts, Lebanon faces substantial financial demands and must navigate complex political dynamics to secure international support. Hezbollah’s role and commitment to aid are significant as the country strives to rebuild post-conflict.
Original Source: www.presstv.ir