Lebanon’s Finance Minister Optimistic About New IMF Agreement for…

Lebanon’s Finance Minister Yassine Jaber is optimistic about a new deal with the IMF following discussions with President Aoun. The IMF stresses the need for a unified financial reform package to address the ongoing economic crisis. Lebanon has been grappling with economic turmoil since 2019, and potential loans from the IMF could aid in recovery. A World Bank reconstruction program has also been proposed.

Lebanon’s Finance Minister, Yassine Jaber, announced on Wednesday the intention to establish a new agreement with the International Monetary Fund (IMF), following a meeting with an IMF delegation. During discussions with Lebanese President Joseph Aoun, Ernesto Ramirez Rigo, the head of the IMF mission, emphasized the need for a unified financial reform package to assist Lebanon in overcoming its prevailing financial crisis.

President Aoun concurred with the IMF representative and underscored Lebanon’s commitment to advancing the proposed reforms, which are anticipated to facilitate a final agreement allowing the country to secure loans from the IMF. Such financial support is deemed essential for reviving Lebanon’s struggling economy.

The IMF delegation is expected to engage in further discussions with Prime Minister Nawaf Salam and Parliament Speaker Nabih Berri regarding the details of the economic plan and the necessary measures. While the specifics of the final reform plan remain undisclosed, it is acknowledged that significant restructuring of the economy is required, particularly in light of the recent attacks from Israel that have exacerbated economic loss.

Lebanon has faced a deepseated economic crisis since 2019, triggered by the collapse of its financial system due to overwhelming state debts, culminating in a sovereign default in 2020 which rendered ordinary depositors unable to access their savings. Despite reaching a preliminary agreement with the IMF in 2022, the finalization of the deal depends on the implementation of required reforms still pending by authorities.

Finance Minister Jaber expressed the Lebanese government’s resolve to undertake all necessary reforms, asserting, “not because anyone demanded it, but because the country itself needs these reforms.” He also highlighted priorities presented to the IMF, including the crucial appointment of a new central bank governor. He indicated that the IMF plans to return for discussions in early April, contingent on this appointment. Furthermore, Prime Minister Salam announced that the World Bank has extended a proposal for a $1 billion reconstruction program for Lebanon, which includes a $250 million loan.

In summary, Lebanon’s government is optimistic about reaching a new agreement with the IMF, with reforms crucial for economic recovery. The commitment from both President Aoun and Finance Minister Jaber signifies the importance of these reforms. With international financial support, including potential loans from the IMF and a reconstruction program from the World Bank, Lebanon seeks to navigate out of its prolonged economic crisis and restore stability to its financial system.

Original Source: news.az