Talks starting with IMF
and holders of Eurobonds

Team in charge of negotiations has been formed

The Ministry of Finance (MoF) said it has resumed interactions with the International Monetary Fund (IMF). The ministry said it is willing to progress towards reaching an agreement on an appropriate recovery program that could be supported by the institution and harness broad support from the international financial community.

“The government is fully conscious of the urgency of Lebanon’s social and economic situation and of the challenges lying ahead. The Government has repeated its commitment to resume discussions with the IMF as early as possible and formed a team in charge of negotiating with the IMF,” MoF said in a statement.

The team in charge of negotiation with the IMF is headed by Deputy Prime Minister Saade Chami, and includes Minister of Finance Youssef El Khalil, Minister of Economy and Trade Amin Salam, and Governor of the Central Bank (BDL) Riad Salameh.

MoF addressed the fate of Eurobonds in default in the same statement. It said: “The Government remains fully committed to engage in a constructive, transparent and equitable debt restructuring process with all other stakeholders, and welcomes the interest of bondholders, including the ‘Ad Hoc Lebanon Bondholder Group’, to participate in this process. In view of the above, the Government reiterates its commitment to a fair and comprehensive solution for all creditors and will engage, with the support of its financial and legal advisors, in good faith discussions with all its creditors as early as practicable.”

Lebanon’s talks with the IMF came to a halt more than a year ago because the former government was unable to present a coherent plan as members of its negotiating team differed amongst each other. It resigned shortly afterwards, following the Port Explosion.

In spite of the absence of a program and a caretaking government at the time, the IMF allocated and disbursed the equivalent of $1.1 billion to Lebanon which were received last month by BDL.