Lebanon seeks fresh IMF staff-level pact as reform push intensifies

Lebanese Finance Minister Yassine Jaber told officials that the country hopes to conclude a new staff-level agreement with the International Monetary Fund, building on reforms such as the recently approved bank restructuring law. During a visit to Washington, Jaber met IMF Managing Director Kristalina Georgieva and emphasized the urgency of moving toward a full IMF program, which would likely involve loan financing. The next critical step is the passage of a financial gap law that would distribute the roughly $70 billion loss from the 2019 crisis among the state, the central bank, commercial banks and depositors.

While a source indicated the staff-level accord could be signed as soon as Monday, another expects it by the end of the year; full program approval will require IMF board consent. The government’s reform agenda has repeatedly faced delays from political and private interests over the past seven years.