Lebanon’s Finance Minister Yassine Jaber is optimistic about securing a new IMF agreement, following a meeting with an IMF delegation. Discussions emphasized the need for financial reforms to address the ongoing economic crisis. Lebanon’s commitment to these reforms is essential for accessing crucial loans from the IMF, with additional support from the World Bank also proposed for reconstruction efforts.
On Wednesday, Lebanon’s Finance Minister Yassine Jaber expressed optimism about establishing a new agreement with the International Monetary Fund (IMF). This statement followed a meeting with an IMF delegation, led by Ernesto Ramirez Rigo, where discussions focused on vital financial reforms necessary for Lebanon’s recovery.
During their discussions, President Joseph Aoun and Rigo emphasized the urgent implementation of a comprehensive financial reform package. This collaboration aims to address Lebanon’s severe financial crisis, with the proposed reforms anticipated to lead to a final agreement enabling Lebanon to secure crucial IMF loans for economic revitalization.
The IMF delegation will engage in further discussions with Prime Minister Nawaf Salam and Parliament Speaker Nabih Berri to outline the economic plan and required actions moving forward. However, the specifics of the impending reforms remain undetermined, especially given the substantial economic restructuring Lebanon faces.
Since 2019, the country has grappled with an ongoing economic crisis, which escalated with a financial system collapse that resulted in a sovereign default in 2020. Unfortunately, this crisis has also excluded ordinary depositors from accessing their savings.
While a draft agreement was reached in 2022 concerning financial assistance, it is contingent on the implementation of reforms yet to be executed by the government. Minister Jaber affirmed the Lebanese government’s resolve to undertake the necessary reforms stating, “not because anyone demanded it, but because the country itself needs these reforms.”
Additionally, Jaber noted that key priorities were presented to the IMF, including the appointment of a new central bank governor, which will be vital for further negotiations. If this position is filled, the IMF is expected to return to Lebanon in early April for continued discussions.
Furthermore, Prime Minister Salam revealed that the World Bank has proposed a $1 billion reconstruction program, which includes a $250 million loan to support Lebanon’s recovery efforts.
In conclusion, Lebanon is taking significant steps towards securing an agreement with the IMF through comprehensive financial reform efforts. The cooperation between government officials and the IMF delegation underscores the urgency of this situation. As the nation navigates an economic crisis that began in 2019, the commitment to reform is seen as essential for the success of future agreements and economic revitalization.
Original Source: news.az
