The IMF and World Bank are linking financial aid to Lebanon with normalization of ties with Israel and Hezbollah’s disarmament. Lebanon is projected to need $6-7 billion for reconstruction. The World Bank’s $1 billion aid is contingent upon political reforms, and EU aid is also subject to banking restructuring requirements.
The International Monetary Fund (IMF) and World Bank are reportedly conditioning aid for Lebanon on two significant requirements: the normalization of relations with Israel and the disarmament of Hezbollah. According to the Beirut-based Al Akhbar newspaper, IMF chief Kristalina Georgieva informed acting central bank governor Wassim Mansouri that funding would be contingent upon specific, timely reforms.
Sources noted that political pressures related to normalization and disarmament are expected outcomes of these funding conditions. This follows speculation from US Special Envoy to the Middle East, Steve Witkoff, about potential normalization agreements between Lebanon and Syria, similar to those brokered by President Donald Trump with other Arab nations.
In recent announcements, Lebanese Finance Minister Yassin Jaber indicated that the World Bank has a preliminary reconstruction plan totaling $1 billion, contingent upon Lebanon implementing necessary financial and political reforms. The World Bank’s approval is anticipated at its Executive Board meeting scheduled for March 25, subject to Lebanon’s compliance with these conditions.
The European Union (EU) has also tied its aid to Lebanon to banking system restructuring, delaying the disbursement of €500 million from a 2024 agreement aimed at managing refugee flows to Europe. Current estimates indicate Lebanon requires $6-7 billion for rebuilding infrastructure damaged by Israeli aggression.
Hezbollah has provided substantial support, allocating approximately $650 million toward housing and restoration efforts in southern Beirut and adjacent areas. Amid difficulties, some residents are returning to their homes, despite ongoing tensions from Israeli operations. Hezbollah has also launched a support initiative for Palestinians in Gaza following the recent conflict that began on October 7, 2023.
The IMF and World Bank are enforcing specific political and financial prerequisites for Lebanon to secure international aid. These conditions center around the normalization of relations with Israel and the disarmament of Hezbollah. Political pressures relating to these issues highlight broader geopolitical dynamics in the region, with substantial financial resources required for Lebanon’s reconstruction efforts following recent conflicts.
Original Source: www.presstv.ir
