Lebanon officially resumes negotiations with the IMF

More than three years after signing a framework agreement with the International Monetary Fund, which has become obsolete, Lebanon officially resumed its negotiations with the IMF on Friday in an attempt to obtain a new financial assistance program.

"The objective is to reach a preliminary agreement between the government and the IMF, paving the way for a financial assistance agreement that will help restore monetary and financial stability and strengthen internal and external confidence in the Lebanese economy," the Finance Ministry said in a statement after this meeting.

This first official meeting between the Lebanese government and the IMF negotiating team marks the beginning of a series of meetings that will continue in the coming days and will conclude on June 5. The Lebanese delegation is led by Finance Minister Yassine Jaber and includes the Minister of Economy and Trade, Amer Bsat, the Governor of the Central Bank, Karim Souhaid, and several senior officials and advisors. The IMF mission is led by Ernesto Riga, mission chief, accompanied by Federico Lima, the IMF's resident representative in Lebanon, and a technical team.

Addressing the 'financial gap'

In the statement, Jaber said that "negotiations are progressing well," and that he "hopes Lebanon will make significant progress in terms of reforms and regain its place within the international community with an active, healthy banking sector and comprehensive reforms in various sectors." At the end of the meeting, in response to a question, the minister specified that "there are no new taxes planned to increase state revenue," but that his ministry will "work to improve tax collection."

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Regarding receiving a draft law on addressing the "financial gap" from the Central Bank, the minister stated that "serious work is underway" and that a "team at the BDL is working on this matter." He added, "We must soon complete the team [drafting this plan] by making a final decision regarding the vice-governors: will we extend the mandate of the current four members or appoint new ones? I think this issue will be settled next week, as well as the appointment of a new banking supervisory commission, and this probably before June 9."

"There are many related issues, but in general, things are progressing well, and by autumn, things will become increasingly clear," Jaber said.