Beirut – Finance Minister Yassine Jaber announced on Sunday that Lebanon hopes to secure a new staff‑level agreement with the International Monetary Fund (IMF) following the passage of a key banking restructuring law. The minister, who was in Washington meeting IMF Managing Director Kristalina Georgieva, said the agreement would pave the way for a full IMF program, which would likely include new loans to help the country recover from its long‑standing financial crisis.
Recent reforms signal progress
Jaber emphasized that Lebanon has “accomplished a phase” by passing the banking restructuring law, describing it as a “very important message to the Fund and to the world that the parliament and the Lebanese government are serious about reforms.” The law, welcomed by the IMF in August, restructures the country’s banking sector and is intended to restore confidence among international lenders.
Financial gap law remains the missing piece
Despite the progress, Jaber warned that a full‑scale IMF agreement cannot be finalized until Lebanon passes a “financial gap law” that would allocate the estimated $70 billion loss from the 2019 financial collapse. The law is designed to distribute losses among the state, the central bank, commercial banks and depositors, allowing those whose savings were frozen to gradually recover their money.
Sources close to the negotiations said a staff‑level agreement could be signed as early as Monday, with another source suggesting it might be finalized by the end of the year. However, a full IMF program requires board approval and could take additional time.
Background on Lebanon’s crisis
Lebanon first signed a staff‑level agreement with the IMF in April 2022, more than two years after its financial system collapsed amid decades of excessive spending and corruption among the ruling elite. Implementation of the original agreement was slow, hampered by political deadlock and vested interests.
The current government has accelerated reform efforts, notably the bank restructuring law, which the IMF praised as a step toward fiscal stability. Yet the financial gap bill, introduced last year, has yet to be passed by parliament, leaving a critical hurdle in the path to comprehensive international assistance.
Implications for the Lebanese people
If the IMF program moves forward, it could provide much‑needed financing to support public services, stabilize the currency and restore access to savings for ordinary Lebanese families who have endured years of hardship. The minister’s remarks underscore the administration’s commitment to meeting IMF requirements while navigating domestic political challenges.
Stakeholders remain cautious, noting that political and private interests have repeatedly derailed reforms over the past seven years. Nonetheless, the recent legislative progress offers a hopeful sign that Lebanon is moving toward the fiscal discipline demanded by the global lender.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
