Lebanese Government Commits to Financial and Economic Reforms and Negotiations with the IMF
The Lebanese government, in its ministerial statement approved last night, announced its intention to negotiate a new program with the International Monetary Fund (IMF) and work on addressing the financial crisis and public debt.
The statement emphasized that the government seeks to build an “effective state with strong public administration and institutions,” which requires the restructuring of the public sector according to an updated vision. It also stressed that economic recovery depends on the restructuring of the banking sector, with a priority on safeguarding depositors’ rights through an integrated plan based on the best international standards.
Lebanon has been facing a severe economic crisis since 2019, when its financial system collapsed under the weight of massive public debt, leading to a default on sovereign debt in 2020 and the freezing of ordinary depositors’ savings in banks. In 2022, Beirut reached a draft agreement with the IMF to provide funding, which was contingent upon reforms that the government at the time was unable to implement.
Lebanese Finance Minister Yassin Jaber, who assumed office in the new government formed this month under Prime Minister Nawaf Salam, stated that an IMF mission is expected to visit Lebanon in March. He added that he met with the IMF’s resident representative in Lebanon, Federico Lima, reaffirming the government’s commitment to moving forward with the required reforms.
The political landscape in Lebanon drastically shifted after it faced months of Israeli aggression. The statement confirmed that the government aims to make Lebanon a “state with the authority to decide on war and peace,” while reaffirming “Lebanon’s right to exercise full sovereignty over all its territory.”
Regarding the energy sector, the statement noted that the government aims to resume oil and gas exploration activities. It also highlighted plans to establish a Ministry of Technology and Artificial Intelligence to foster innovation and sustainable development in the country.
