Beirut (agencies)
Yesterday, a delegation from the International Monetary Fund began a new mission in Lebanon, which is mired in an unprecedented economic crisis, as part of negotiations to reach an agreement on a financial rescue plan, according to an informed source.
The source, who declined to be identified, said that “a team from the International Monetary Fund arrived in Lebanon on a two-week mission.”
Since 2019, Lebanon has witnessed an unprecedented economic collapse, which the World Bank has ranked among the worst in the world since the middle of the last century. This is accompanied by political paralysis that prevents taking reform steps to limit the deterioration and improve the quality of life of the population, more than eighty percent of whom live below the poverty line. In 2020, Lebanon defaulted for the first time on its foreign debt.
“We hope to reach an initial agreement within two weeks of discussions,” said Deputy Prime Minister Saadeh Al-Shami, who is chairing the negotiations from the Lebanese side.
The delegation headed by Ernesto Ramirez began its mission in Beirut by meeting President Michel Aoun, according to the Lebanese presidency, noting that the discussion dealt with “the course of negotiations with the Lebanese side to launch the economic and financial recovery plan.”
On February 11, the Fund announced a roadmap that it presented to Lebanon, stressing that “the unprecedented magnitude of losses in the financial sector must be addressed, in a transparent manner, while protecting small depositors.”
The IMF reiterates that it will not provide any financial support as long as the Lebanese government does not agree to undertake ambitious reforms necessary to get the country out of the economic crisis, on top of which is the budget correction, restructuring the banking sector, reforming public institutions, and firmly addressing rampant corruption.
The Lebanese negotiators agreed to estimate the size of the financial losses at 69 billion dollars, without agreeing yet on how to distribute them.
The political division and the difference in viewpoints prevents moving forward with implementing the required reforms, especially the adoption of a proposed law to restrict deposits, or what is known as “Capital Control”.
In addition, President Michel Aoun called yesterday to encourage the displaced Syrians to return to their country, stressing the determination to hold the parliamentary elections on their scheduled date on May 15, after securing the necessary funds for them, and completing many of the related arrangements.
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