Beirut reports 'positive pace' and 'significant progress' in IMF talks

The Lebanese Finance Ministry said talks with the International Monetary Fund (IMF), which began last Tuesday, continued Thursday in Beirut at a "positive pace," recording "significant progress toward formulating a common understanding on key issues."

The discussions brought together Finance Minister Yassin Jaber, Economy and Trade Minister Amer Bisat, representatives from the offices of the president and the prime minister, the head of the banking control authority, the director of public finance, as well as specialized teams from the Finance and Economy Ministries.

The IMF was represented by Ernesto Ramirez Rigo, mission chief in Lebanon; Federico Lima, resident representative; and their technical team.

A statement from the Ministry specified that the talks "are proceeding at a positive pace" and are seeing "significant progress toward formulating a common understanding on essential issues, both in terms of financial sector reform and public finance."

The statement highlighted "the importance of maintaining financial discipline and preventing any slippage that could jeopardize the gains achieved so far and compromise efforts to stabilize the economy."

The Ministry also noted that the existence of a comprehensive draft law on addressing the financial deficit "is a positive development after years of stagnation," opening "the door to serious and constructive discussions based on a comprehensive approach to the solution."

The IMF, for its part, emphasized "the commitment of decision-makers and members of Parliament to constructive and focused discussions aimed at identifying practical and sustainable solutions."

The IMF is not expected to make any statements before the end of this follow-up visit, which comes nearly three weeks after the Davos summit meeting between Prime Minister Nawaf Salam and IMF Managing Director Kristalina Georgieva, which was also described as "very positive" by the institution's chief.

In two months, a Lebanese delegation is scheduled to travel to Washington to attend the IMF and World Bank spring meetings. This will be the last window for official talks before Lebanon's parliamentary elections in May.

Despite the commitment the Salam government made when it was formed a year ago, Lebanon’s progress on reforms remains uneven.

The banking secrecy law was adopted with difficulty in April 2025; the banking resolution law must be amended to meet IMF expectations, as must the draft law on "the financial gap."

The 2026 budget, which President Joseph Aoun signed on Tuesday and must be published quickly in the Official Gazette, is not part of a medium-term strategy to rationalize state public finances.

Some observers consider credible the possibility that the IMF could relax some of its secondary requirements for Lebanon if the issue of restoring the state's monopoly on arms is satisfactorily resolved, but no official statement has been made so far by Lebanese authorities, the IMF or any other party.