The IMF stresses the importance of a unified financial reform plan for Lebanon to address its economic challenges and secure foreign funding. Ongoing negotiations with Lebanese officials focus on essential reforms following the country’s persistent financial crisis. Diplomatic efforts have also led to recent prisoner releases, underscoring a broader approach toward addressing Lebanon’s recovery and regional stability.
The International Monetary Fund (IMF) emphasized that a unified financial reform plan is essential for Lebanon to tackle its economic challenges and attract foreign funding. Ernesto Ramirez Rigo, head of the IMF mission, conveyed this during discussions with Lebanese President Joseph Aoun, who reaffirmed Lebanon’s commitment to implement necessary reforms.
The ongoing negotiations between Lebanon and the IMF aim to facilitate crucial reforms, addressing the severe financial and economic crisis Lebanon has faced since 2019, largely due to mismanagement, corruption, and rising debt. Presidential media adviser Najat Charafeddine highlighted that the IMF underscored the need for the proposed plan to be endorsed by all relevant parties before parliamentary approval.
The IMF delegation indicated that successful implementation of reforms would enable Lebanon to access aid, notably from countries with established ties to Lebanon. Additionally, the plan is expected to provide an IMF seal of approval, thus unlocking further assistance for the country. Restructuring banks and reassessing banking secrecy laws were identified as fundamental elements of the plan, which remain contentious issues.
Technical discussions between IMF experts, a World Bank delegation, and officials from the Lebanese Ministry of Finance focused on enhancing transparency in public finances and comprehensive reforms. The IMF delegation met with Prime Minister Nawaf Salam, Parliament Speaker Nabih Berri, and Finance Minister Yassine Jaber to outline the economic plan’s details and necessary reforms.
Minister Jaber stated that discussions on appointing the Banque du Liban governor would be pivotal, as this individual is expected to play a significant role in cooperation with the IMF. Furthermore, he noted that addressing the issue of frozen deposits would occur in phases, and he possesses limited authority over the banking sector. World Bank Vice President Ousmane Dione previously urged the Lebanese government to enact reforms to improve credibility and investor confidence.
A technical committee meeting scheduled to take place with the Association of Banks aimed to review the exchange market’s performance and the Banque du Liban’s interventions in order to monitor the cash economy that has emerged since Lebanon’s financial collapse.
In a parallel development, diplomatic efforts led to the release of four captives held by Israel, a move celebrated by Hezbollah supporters. Israel intends to release a fifth captive shortly. Activists claimed that these diplomatic successes demonstrated that negotiation, rather than military action, was effective.
U.S. officials reported ongoing mediation between Israel and Lebanon, aiming not only to reinforce the ceasefire agreement but also to resolve outstanding border disputes. Although negotiations surrounding 13 points remain unresolved since the 2000 withdrawal, the U.S. and French embassies, along with UN peacekeeping forces, affirmed their commitment to ensuring the full implementation of ceasefire terms.
Israeli politicians acknowledged that discussions with Lebanon are part of a broader initiative towards normalization, while they expressed that both nations have border claims that require resolution.
In summary, the IMF urges Lebanon to establish a unified financial reform plan to resolve its economic crisis and attract foreign support. Key discussions are ongoing among Lebanon’s leadership and international entities to ensure transparency and effective reforms, while diplomatic efforts have led to recent prisoner releases. These developments reflect a holistic approach toward Lebanon’s economic recovery and geopolitical stability.
Original Source: www.arabnews.com
