Government preparing
a new plan for the IMF

Eager to work…and quickly, said the fund

The government will negotiate a fresh program with the International Monetary Fund (IMF) as part of efforts to tackle the country’s prolonged financial crisis, according to a policy statement approved by the cabinet late Monday. The government pledged to address the financial default and mounting public debt while pursuing an economic revival—an effort that, it stated, hinges on restructuring the struggling banking sector.

A draft funding agreement was reached with the IMF in 2022, but it remained unimplemented due to the authorities’ failure to pursue its implementation.

The Minister of Finance Yassine Jaber of said that an IMF mission is expected to visit Lebanon in March. “I have met with the IMF’s resident representative in Lebanon and reaffirmed our commitment to moving forward with reforms,” he said. The IMF representative signaled readiness to discuss a new loan program after meeting with Jaber.

The Minister of Economy and Trade Amer Bisat, who is expected to co-lead Lebanon’s negotiations with the IMF, said last week in a television interview that the government is planning to present its plan to the IMF. He conditioned the restructuring of the banking sector by first completing an audit of the banks to determine the “real numbers” and the needs of each bank as well as the sector.

The government, in its ministerial statement said that it will push forward with oil and gas exploration efforts, a long-awaited initiative to tap into offshore reserves. It announced plans to establish a Ministry of Technology and Artificial Intelligence, signaling a focus on digital transformation and innovation.

IMF Managing Director Kristalina Georgieva said that “intensive consultations” were underway with Lebanon’s allies to provide assistance to the country. She said that the IMF was “ready to act quickly.” She said that Lebanon’s situation had created an opening for long-delayed reforms.

Central Bank (BDL) Interim Governor Wassim Manssouri said that Georgieva welcomed the recent political developments in the country, calling them key steps toward stability. She also praised the composition of Lebanon’s ‘Reform and Rescue’ government, and its inclusion of experts selected independently of the country’s political parties. The IMF, she reaffirmed, remained committed to supporting Lebanon’s new leadership and hoped to engage directly with authorities on the ground soon.

Last week, IMF spokesperson Julie Kozak echoed Georgieva’s optimism, stating that the IMF was “eager to work” with Lebanon’s new leadership to tackle its economic crisis.

The IMF has not updated its economic forecasts for Lebanon since the beginning of the war. Its latest update, published in October, showed a 0.7 percent contraction in GDP. The World Bank revised its projections, predicting a 5.7 percent contraction and estimating total war-related damages at over $3.4 billion, with economic losses nearing $5.1 billion.