IMF open to Lebanon aid talks
Shafaq News/ On Wednesday, the International Monetary Fund (IMF) expressed readiness to begin negotiations with the Lebanese government on a new support program aimed at helping the country navigate its economic crisis.
IMF Spokesperson told AFP, “We intend to work with the president and the new government to address the significant challenges facing Lebanon’s economy. This includes discussions on a new aid program that could help restore debt sustainability.”
Lebanon’s Finance Ministry said in a statement that Minister Yassine Jaber, during a meeting with IMF representative Frederico Lima, emphasized the government’s strong commitment to reaching a deal with the IMF, recognizing its crucial role in driving economic reforms and securing renewed international support. Reviving the economy, it stressed, would not be possible without restructuring the banking sector to restore its ability to finance economic growth.
The statement added that the government aims to build an efficient administration with strong institutions, which requires restructuring the public sector in line with modern governance standards.
The developments come after more than two years of political deadlock, which ended with the election of former army chief Joseph Aoun as Lebanon’s president and the appointment of Judge Nawaf Salam as prime minister. The new administration faces significant challenges, including implementing essential reforms to unlock billions of dollars in international aid, managing a fragile ceasefire between Israel and Hezbollah, and overseeing the reconstruction of war-damaged areas.
The Lebanese government has previously stated its intention to negotiate a new program with the IMF as part of broader efforts to tackle the financial crisis and ease the burden of public debt.
Before stepping down in May 2022, Najib Mikati’s government reached a preliminary deal with the IMF, pledging to implement key reforms as a condition for securing a formal financial aid package worth $3 billion over four years. However, Lebanon has yet to meet its obligations, including addressing its near-collapsed banking sector. As a result, while the agreement remains in place, it has not been put into effect.
