Deputy Prime Minister Saadeh Chami at his office in Beirut in May 2022. (Credit: Philippe Hage Boutros / L'Orient-Le Jour)
Lebanese Deputy Prime Minister, Saadeh Chami issued a statement on Tuesday calling out the members of Lebanon's political class who believe that the government's negligence has caused the International Monetary Fund (IMF) to disengage from the Lebanese file.
"The government has prepared, in agreement with the IMF, an economic and financial program, as well as a plan...which were transmitted to the Parliament on Sept. 9," said Chami, who usually remains low-profile in the media.
Chami is an economist and has worked with the IMF.
"In light of the complications that have arisen, some have concluded that the IMF has decided to withdraw from the agreement, while Lebanon has confirmed that it remains committed to its side," he continued.
Solutions and tragedies
Chami, who is not affiliated with Lebanon's established political parties, was entrusted by the Mikati cabinet, formed in Sept. 2021, to lead negotiations with the IMF.
In the statement, Chami stressed that he completed his "main task in the government: to prepare an integrated program of economic reforms and finalize an agreement with the IMF."
He added that the country still has "solutions" to get out of its economic problems, provided that there is "political will" to implement them.
Further postponing the implementation of such reforms could lead the country to "other tragedies," he said.
Chami criticized those who praise the use of IMF assistance while criticizing the government's plan, which he said is the "pillar" of an agreement with the organization.
His statement comes less than a week after the visit of an IMF delegation led by the mission chief for Lebanon, Ernesto Ramirez Rigo. During the visit, the delegation delivered their observations, as per the evaluation process stated in Article IV of the organization's statutes.
The delegation presented its findings at a press conference held at the Phoenicia Hotel, without any Lebanese officials present. It lamented the lack of progress made towards implementing the reforms set out in the preliminary agreement signed in April 2022 and blamed the Parliament for the delay.
The IMF was also adamant about recognizing and dealing with the country's accumulated financial losses (around $70 billion), insisting that they should be shared between the state, Banque du Liban, banks and depositors.
The delegation stated that while the details of the preliminary agreement need an update, its general content will remain the same. The delegation also said that the amount of aid the IMF considered giving to Lebanon if it honored its commitments, set at $3 billion over four years, could be subject to change.