Salam tells EU diplomats that Lebanon is determined to reach a deal with IMF

BEIRUT — Prime Minister Nawaf Salam said Tuesday that Lebanon remains "determined to achieve a program with the International Monetary Fund (IMF), in line with the commitments set out in the government's ministerial statement" of February 2025, even as reforms aimed at securing a preliminary agreement with the IMF remain stalled over the bank resolution law.

"This program is not only a goal in itself, but also a crucial step to restore the international community's confidence in Lebanon and to open the door to international sources of funding that the country desperately needs," Salam said during a meeting at the Grand Serail with ambassadors and senior diplomats from European Union member states, as well as representatives from the United Kingdom, Switzerland, Norway, Canada and Australia.

"The government has already sent to Parliament the draft law on addressing the financial deficit and restoring financial regularity [the Gap Law, which is meant to allocate several tens of billions of dollars in losses], and it was open to any improvements during its review in the Chamber. Unfortunately, the war broke out before Parliament began examining the draft. We hope it will be able to do so soon," promised the prime minister.

"The government will be present at the meetings of parliamentary committees to contribute to the discussions and introduce the necessary improvements. We also hope that Parliament will decide on amendments to the banking resolution law," he added.

European Union Ambassador Sandra De Waele described the meeting as "productive," saying discussions focused on "two key financial reforms": the bank resolution law and the law governing the allocation of financial losses and the repayment of deposits frozen in insolvent banks since the financial crisis began in 2019.

"These two laws must be fully in line with the recommendations of the International Monetary Fund. This is essential to pave the way for an IMF-supported program, which will not only secure financing, but will also open the way to more investment and broader financial support from the European Union and other international partners," De Waele said, adding that strengthening the independence of the judiciary would be "the next step."