$200 million loan: Lebanon signs World Bank agreement approved in January

BEIRUT — Lebanon’s Finance Minister Yassine Jaber signed on Wednesday a $200 million agreement approved in January by the World Bank under its AMAN – ESSN (Emergency Social Safety Net Project) program, the Finance Ministry said in a statement on Thursday.

The funds are intended to strengthen the emergency social safety net and expand the state’s capacity to support its most vulnerable groups, as Lebanon faces renewed fighting with Israel.

A small Lebanese delegation, including Jaber, Economy Minister Amer Bisat and Social Development Minister Haneen Sayed, is currently attending the Spring Meetings of the International Monetary Fund (IMF) and the World Bank (WB) in Washington, which run through April 18.

During the visit, the delegation also held talks with World Bank officials and representatives of Norwegian partner institutions to address the repercussions of the ongoing war and its impact on economic and humanitarian sectors, while also following up on existing development projects, according to the press release.

Fighting between Hezbollah and Israel resumed on March 2, two days after the start of the U.S.-Israeli offensive against Iran, and more than a year after a cease-fire was reached in Lebanon in November 2024.

The current conflict, which has killed more than 2,000 people to date, has also displaced more than one million people in Lebanon.

In addition to discussions on financing for war-related impacts and urgent humanitarian needs, “the meeting reviewed the portfolio of development projects signed with the World Bank at the end of last year, worth more than $1.3 billion, as well as progress in their implementation,” the press release further noted.

The two sides also discussed multiple options, including rescheduling priorities within existing loans and the possibility of benefiting from emergency financing instruments, with technical consultations set to continue in the coming period to determine the most suitable framework for meeting Lebanon’s current needs.

On Tuesday, Bloomberg reported that Lebanon and the IMF were in talks over possible fast-track assistance to help the country cope with the fallout of the war. Discussions are centered on a financing instrument that could provide between $800 million and $1 billion to Lebanon, with the funds expected to go toward supporting the humanitarian response.