The logo of the International Monetary Fund in front of its headquarters in Washington. (Credit: AFP)
BEIRUT — Lebanon and the International Monetary Fund (IMF) are discussing options to access fast-track assistance to help the country cope with the impact of the Middle East war, Bloomberg reported on Tuesday, citing people familiar with the matter.
“The conversations are focused on some type of financing instrument that would give Lebanon access to between $800 million and $1 billion,” Bloomberg said, adding that the talks remain private. The funds would go toward support and the humanitarian response.
The war in Lebanon between Hezbollah and Israel resumed on March 2, more than a year after a cease-fire was reached in November 2024 to halt hostilities from the previous full-fledged war that escalated in September.
Lebanon resumed talks last year with the Washington-based lender in a bid to unlock a new rescue package, after a 2022 staff-level agreement lapsed because the country failed to implement the nine prior actions and reforms required by the Fund to seal the deal.
A small delegation from Beirut, including Finance Minister Yassine Jaber and Economy and Trade Minister Amer Bisat, is currently in Washington for the IMF-World Bank Spring Meetings, which are taking place this week.
“The IMF has a tool known as the Rapid Financing Instrument that’s available for countries with urgent balance-of-payments needs. But Lebanon wouldn’t be able to have direct access to this kind of credit because it is in default on its debt,” Bloomberg noted.
Lebanon defaulted on its sovereign debt in March 2020 and has yet to begin restructuring negotiations with Eurobond holders.
