Lebanon’s Finance Minister Yassine Jaber announced plans for a new IMF deal after discussions with the IMF delegation. A unified reform package is essential for economic recovery amid ongoing financial crises. Government commitment towards necessary reforms, including appointing a central bank governor, plays a crucial role in securing future loans for the nation’s revival.
Lebanon’s Finance Minister Yassine Jaber expressed optimism about establishing a new deal with the International Monetary Fund (IMF). This announcement followed his meeting with an IMF delegation, during which the delegation’s leader emphasized the need for a unified financial reform strategy to help Lebanon address its economic crisis.
President Joseph Aoun met with IMF mission head Ernesto Ramirez Rigo, agreeing on the necessity of implementing proposed reforms. These changes aim to facilitate a final agreement for loans from the IMF, essential for restoring Lebanon’s struggling economy.
The IMF delegation plans to engage in further discussions with Prime Minister Nawaf Salam and Parliament Speaker Nabih Berri, alongside Minister Jaber, to refine the details of the economic recovery plan. While the specific reform strategy is yet to be revealed, the required economic restructuring is extensive, compounded by significant losses from regional conflicts.
Lebanon has been embroiled in an economic crisis since 2019, marked by the collapse of its financial system and a sovereign default in 2020, which locked depositors out of their savings. Despite a draft agreement with the IMF in 2022 linked to necessary reforms, execution has stalled.
Jaber affirmed the Lebanese government’s commitment to undertaking vital reforms, stating these actions stem from the country’s needs rather than external pressure. He noted the agenda presented to the IMF includes appointing a central bank governor, crucial for moving forward.
The IMF is expected to return to Lebanon in early April, contingent upon the appointment of a new central bank governor. Minister Jaber confirmed that additional discussions with the IMF would occur on Thursday, while Prime Minister Salam revealed the World Bank’s proposal of a $1 billion reconstruction program, featuring a $250 million loan.
Lebanon’s government, under the leadership of Finance Minister Yassine Jaber, is taking steps towards a new agreement with the IMF to address the ongoing economic crisis. The necessity for comprehensive reforms has been recognized, highlighting the government’s prioritization of economic restructuring to gain access to international loans. As discussions progress, the appointment of a central bank governor remains a pivotal aspect for securing future financial assistance and facilitating a recovery plan.
Original Source: news.az
