Beirut: The International Monetary Fund (IMF) has recently allocated USD 250 million to aid Lebanon, sending a delegation to Beirut to ensure compliance with terms for further financial assistance. The IMF delegation engaged in discussions with local leaders about a prospective financial reform program aimed at stimulating growth and supporting low-income groups as part of the anticipated bailout agreement. According to Kuwait News Agency, Prime Minister Nawaf Salam described the discussions with the IMF mission as "responsible and realistic," expressing confidence in the fund's ability to restore financial stability and oversee structural reforms within the Lebanese administration. Minister of Finance Yassin Jaber noted that the negotiations with the IMF progressed positively, with fund officials acknowledging "tangible progress" regarding financial regulations and the desired reforms, though he raised concerns about the impact of regional "security developments" on the country. Minister Jaber highlighted that significant reform steps have been taken, including the enactment of the banking confidentiality law and the drafting of the banks regulation law, which is under parliamentary review. He acknowledged the challenge posed by the "financial vacuum law" required for compensating banks' depositors, which will be revisited once Central Bank Governors' deputies are appointed. Lamyaa Al-Mubayyed, Chairperson of Basil Fleihan Institute for Economy and Finance, stated that the IMF provides soft loans based on member state contributions and that Lebanon seeks USD three billion, despite needing USD eight billion due to war-related losses. She emphasized that the IMF requires tangible financial and administrative reforms, maintaining a technical rather than political stance. Antoine Farah, head of the economy department at "Al-Jumhouriya," remarked that the main focus of the IMF talks is formulating a funding program, noting the slow pace of discussions. He highlighted that the parliament had approved the banking c onfidentiality law and the banking reforms bill, while the crucial "financial vacuum law" for depositors remains pending until after parliamentary elections next spring. Finance Minister Jaber expressed confidence that the banking regulation law would be passed by the end of the month. Former Minister of Economy Alaine Hakim stressed the need for financial support from GCC countries and the importance of attracting external investments, which require a stable security environment and state-controlled arms possession. The IMF recently approved USD 250 million for Lebanon for emergency reconstruction, estimating the country needs USD 11 billion to cover war-related losses. Lebanon's financial-economic crisis has deepened since 2019, with the national currency losing over 90 percent of its value and the domestic product shrinking by 60 percent.
