Allocation of losses: No vote on the law before mid-October, Jaber concedes

Unless there is a change in trajectory, the law designed to organize the allocation of the massive financial losses accumulated by Lebanon — which triggered the collapse of its banking sector — will not be adopted before the Lebanese delegation leaves for Washington in mid-October to attend the annual meetings of the International Monetary Fund (IMF) and World Bank.

Finance Minister Yassine Jaber confirmed this on Tuesday during a press briefing held after two meetings on his agenda: first with World Bank regional director Jean-Christophe Carret, and then with the IMF delegation led by mission chief Ernesto Ramirez Rigo. The latter arrived in Lebanon for a visit to continue discussions on a "comprehensive reform program" intended to revive the country’s crisis-hit economy, to use the organization’s wording.

“It’s impossible, even after 15 days. Efforts are being made, but not before our departure,” the minister specified in response to a journalist’s question. This law is one of the critical texts the country must adopt to effectively launch the financial system cleanup process, together with the banking secrecy law — adopted in April — and one setting the groundwork for banking resolutions.

It is therefore uncertain whether the IMF — which Lebanon hopes to convince to unblock a financial assistance program contingent on reforms — will be particularly pleased with this news, even though the minister seemed to think a few days ago that recent high-level appointments at various regulatory authorities, blocked for years, were enough to satisfy expectations. The minister also appears convinced that Lebanon gained points with the adoption of the 2026 state budget bill, which the Cabinet finalized on Monday. The adoption of the text, which must still be voted on by Parliament less than a year before the spring legislative elections, was also on the agenda of the minister’s two meetings.

According to a source close to the government, the text initially submitted by the finance minister at the end of August was substantially amended over the course of the week, but we were unable to consult the final version, which the ministry was still finalizing. Anticipating this, the Lebanese Association of Chartered Accountants announced in a statement Tuesday that it had submitted to the Cabinet secretariat an official document containing its observations and proposals, mainly aimed at combating tax evasion.

Upcoming signing of a reconstruction loan

The minister briefly discussed the agenda of the IMF delegation’s visit, which has remained rather discreet until now. "The IMF has already started talks with directors at the ministry and other ministries, and will, during this visit, meet with numerous representatives from the private sector, as well as the three presidents (President Joseph Aoun, Prime Minister Nawaf Salam, and Speaker of Parliament Nabih Berry). It will be an opportunity for a comprehensive review of Lebanon’s progress and the economic, financial and monetary outlook," Yassine Jaber explained.

He then confirmed that a delegation including Central Bank governor Karim Souhaid and himself would travel to Washington in October for a similar round to that made last April during the spring meetings of the World Bank and IMF. "We hope to succeed in attracting further contributions for reconstruction," he concluded on this subject. According to a World Bank report published last winter, Lebanon needs at least $11 billion to fund this endeavor and erase the scars left by the war that pitted Israel against Hezbollah for over thirteen months — not to mention nearly a year of ceasefire marked by almost daily Israeli strikes.

The minister also indicated that Parliament will vote next week on the law approving the $250 million loan signed at the end of August by Lebanon and the World Bank to finance part of the country’s reconstruction. The package will be provided under the title Lebanon Emergency Assistance Project (LEAP), with a specific framework governing how it will be spent.

"As soon as the law is adopted by Parliament, the loan will be available within days. The Council for Development and Reconstruction will be in charge of executing the projects. This loan is an initial part of a larger fund, which will include a €75 million contribution from France, as well as support pledges from Arab and Islamic funds. Reconstruction projects will begin in several regions," the minister added.