The IMF states that a unified financial reform plan is key for Lebanon’s economic recovery and foreign funding support. Ongoing negotiations emphasize the need for all parties’ approval. Diplomatic efforts have also yielded prisoner releases from Israel, showcasing Lebanon’s negotiation capabilities, while addressing reforms remains vital to restoring confidence and aid.
A unified financial reform plan is vital for Lebanon to address its economic problems and unlock foreign financial assistance, according to Ernesto Ramirez Rigo, head of the IMF mission in Lebanon. He conveyed this message during a meeting with President Joseph Aoun, who reiterated Lebanon’s commitment to reform implementation. Current negotiations between Lebanon and the IMF focus on critical reforms necessary for the country’s financial recovery amidst ongoing crises stemming from mismanagement, corruption, and debt accumulation since 2019.
The IMF delegation stressed that all relevant parties must approve Lebanon’s reform proposals for them to succeed in parliament. Implementing these reforms will pave the way for Lebanon to receive international aid and grants from supportive nations. An IMF endorsement of the reform plan is seen as essential for unlocking such assistance.
Key reforms highlighted by the IMF include the restructuring of banks and a reassessment of banking secrecy laws, which have not progressed due to existing disagreements. Over the past few days, technical discussions occurred between IMF experts and the World Bank, in addition to Lebanese Ministry of Finance officials, aimed at enhancing transparency in public finances through comprehensive reforms.
Engagements with key Lebanese political figures, including Prime Minister Nawaf Salam and Parliament Speaker Nabih Berri, focused on economic plan details and reform priorities. Finance Minister Yassine Jaber emphasized the necessity for appointing a new governor of Banque du Liban to collaborate with the IMF and the ongoing preparations for the financial reform plan, including amendments to the Monetary and Credit Law.
Jaber outlined plans to gradually address the issue of frozen bank deposits, clarifying his limited control over the banking sector as a minister. Additionally, World Bank VP Ousmane Dione previously urged the Lebanese government to pursue reforms for improved investor confidence and business conditions.
Upcoming meetings will review the performance of Lebanon’s exchange market and banking restrictions as part of broader economic oversight. Diplomatic efforts have also led to the release of Lebanese captives held by Israel, with recent developments showcasing Lebanon’s capability in negotiations. Activists have praised diplomatic achievements over military solutions regarding prisoners’ release and border disputes.
Amid continued pressures relating to border negotiations, both Israel and Lebanon are committed to maintaining the ceasefire accord and addressing outstanding territorial issues. Israeli officials indicated that normalization efforts with Lebanon are part of broader regional strategies, aiming to resolve mutual border claims in the future, while jointly working towards implementing the ceasefire.
Lebanon’s financial recovery hinges on a unified reform plan, as emphasized by the IMF. Reforms are essential not only for foreign aid but also for restoring investor confidence and financial transparency. Ongoing diplomatic efforts are demonstrating effectiveness in securing prisoner releases with Israel, indicating Lebanon’s strategic negotiations extend beyond economic challenges to broader regional diplomacy. The commitment from all relevant parties is crucial for the success of these initiatives.
Original Source: www.arabnews.com
