The Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva in Washington, October 13, 2022. Credit: Brendan Smialowski / AFP)
Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, called on the Lebanese political class Thursday to "work for the stability of the country" and "put their country and people first."
Lebanon has been suffering from a severe economic crisis since 2019.
"We need a clear commitment at the political level to the stability of Lebanon," Georgieva said during a press conference. "We cannot do anything until reforms are carried out for the benefit of the Lebanese people."
"This can only be solved if Lebanese political actors put aside their divisions and put themselves at the service of the Lebanese people, who deserve nothing less," the IMF managing director insisted.
This is not the first time the IMF has denounced the reluctance of Lebanese authorities to implement the reforms needed to release international aid, even saying the "delay could prove costly for the country." In April, the institution announced a staff-level agreement with Beirut to offer $3 billion in aid, spread over four years, but the aid is conditional on the implementation of crucial reforms.
Lebanon's Parliament adopted a 2022 budget, one of the IMF's main preconditions, at the end of September. But several major reforms remain to be carried out, including changes to the banking secrecy law, a restructuring of the banking sector, and a new law on capital controls.
'Source of growth and opportunity'
After two years of negotiations, Lebanon reached a "historic" agreement with Israel on Tuesday concerning the delimitation of their shared maritime border, removing the main obstacle to the exploitation of gas deposits in the eastern Mediterranean. In the midst of a financial collapse, Lebanon will still have to wait several years before possible financial gains, as exploration of the Qana field has not yet begun.
Commenting on the matter, Georgieva said the proposed agreement may signify a source of growth and opportunity for Lebanon.