IMF sees 'some progress' on Lebanon reforms, says external support needed
A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., U.S., November 24, 2024. REUTERS/Benoit Tessier/File photo
BEIRUT - Lebanon has made progress on reforms needed to revive its economy but still has key steps to take and will need external funding on concessional terms, the International Monetary Fund said on Thursday after a week of meetings in Beirut.
Lebanon's economy went into a tailspin in late 2019, prompted by decades of profligate spending by the country's ruling elite. Reforms required to access IMF funding were repeatedly derailed by political and private interests.
Lebanon's new president and prime minister, both of whom took office in early 2025, pledged to prioritise reforms and secure an IMF financing agreement - but the country now faces additional needs with the widespread destruction and displacement caused by Israel's military campaign last year.
"The authorities have made some progress recently, including the amendment of the Bank Secrecy Law and submission of a new bank resolution law to Parliament," the IMF's Lebanon mission chief Ramirez Rigo said in a written statement.
Rigo said his mission held "productive discussions" with Lebanese officials, including on restoring the viability of the banking sector, fiscal and debt sustainability and enhancing anti-money laundering and terrorism financing measures.
He said Lebanon's medium-term fiscal framework should support the restructuring of Eurobond debts, which Lebanon defaulted on in 2020, leading to a sovereign default on its $31 billion of outstanding international bonds.
"Given Lebanon's substantial reconstruction needs, limited fiscal space and lack of capacity to borrow, the country will require significant support from external partners on highly concessional terms," the IMF statement said.
The World Bank estimated Lebanon's recovery and reconstruction needs following Israel's military campaign at $11 billion. But the U.S. has said it opposes any reconstruction funds to Lebanon until Hezbollah - the Iran-backed Lebanese armed group that fought Israel last year - is disarmed. REUTERS
Join ST's Telegram channel and get the latest breaking news delivered to you.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
14 minutes ago
- Straits Times
World leaders react to US attack on Iran
Patrons of the Chapel Street Cafe watch as U.S. President Donald Trump delivers an address to the nation following U.S. strikes on Iran's nuclear facilities, in Chicago, Illinois, U.S. June 21, 2025. REUTERS/Dylan Martinez The reaction of world leaders after U.S. forces struck three Iranian nuclear sites on Sunday Iran time ranged from Israel lauding President Donald Trump's decision to the U.N. calling for de-escalation and some countries condemning the attacks. ISRAEL PRIME MINISTER BENJAMIN NETANYAHU, RECORDED STATEMENT: "Congratulations, President Trump. Your bold decision to target Iran's nuclear facilities with the awesome and righteous might of the United States will change history... History will record that President Trump acted to deny the world's most dangerous regime the world's most dangerous weapons." U.N. SECRETARY-GENERAL ANTONIO GUTERRES, STATEMENT "I am gravely alarmed by the use of force by the United States against Iran today. This is a dangerous escalation in a region already on the edge – and a direct threat to international peace and security. There is a growing risk that this conflict could rapidly get out of control – with catastrophic consequences for civilians, the region, and the world. I call on Member States to de-escalate and to uphold their obligations under the UN Charter and other rules of international law. At this perilous hour, it is critical to avoid a spiral of chaos. There is no military solution. The only path forward is diplomacy. The only hope is peace." VENEZUELA FOREIGN MINISTER YVAN GIL, ON TELEGRAM: "Venezuela Condemns U.S. Military Aggression Against Iran and Demands an Immediate Cessation of Hostilities. The Bolivarian Republic of Venezuela firmly and categorically condemns the bombing carried out by the United States military, at the request of the State of Israel, against nuclear facilities in the Islamic Republic of Iran, including the Fordow, Natanz, and Isfahan complexes." MEXICO FOREIGN MINISTRY, ON X: "The ministry urgently calls for diplomatic dialogue for peace between the parties involved in the Middle East conflict. In keeping with our constitutional principles of foreign policy and our country's pacifist conviction, we reiterate our call to de-escalate tensions in the region. The restoration of peaceful coexistence among the states of the region is the highest priority." CUBA PRESIDENT MIGUEL DIAZ-CANEL, ON X: "We strongly condemn the US bombing of Iran's nuclear facilities, which constitutes a dangerous escalation of the conflict in the Middle East. The aggression seriously violates the UN Charter and international law and plunges humanity into a crisis with irreversible consequences." REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
18 minutes ago
- Straits Times
Congress members split over US attack on Iran
Mr Thomas Massie, a Republican from Kentucky, said the move to declare war on foreign countries is not constitutional. PHOTO: REUTERS Congress members split over US attack on Iran WASHINGTON - Republican and Democratic members of the US Congress delivered swift reactions to US bombings of Iranian nuclear facilities early on June 22 . The following are statements from key lawmakers: Senate Armed Services Committee Chairman Roger Wicker The Republican from Mississippi applauded the operation but cautioned that the United States now faced 'very serious choices ahead'. Senate Foreign Relations Committee Chairman Jim Risch 'This war is Israel's war, not our war, but Israel is one of our strongest allies and is disarming Iran for the good of the world,' said the Republican from Idaho. 'This is not the start of a forever war. There will not be American boots on the ground in Iran.' Thomas Massie, Republican from Kentucky 'This is not constitutional,' Mr Massie said on social media. He was referring to the power of Congress to declare war on foreign countries. US House of Representatives Speaker Mike Johnson 'The president gave Iran's leader every opportunity to make a deal, but Iran refused to commit to a nuclear disarmament agreement,' said the Republican from Louisiana. 'The president's decisive action prevents the world's largest state sponsor of terrorism, which chants 'Death to America,' from obtaining the most lethal weapon on the planet.' Senate Majority Leader John Thune The South Dakota Republican said: 'I stand with President Trump.' Rashida Tlaib, Democrat from Michigan A daughter of Palestinian immigrants, Ms Tlaib said President Trump sending US troops to bomb Iran without the consent of Congress is a blatant violation of the US Constitution. 'The American people do not want another forever war. We have seen where decades of endless war in the Middle East gets us - all based on the lie of 'weapons of mass destruction,' she added. Senator Tim Kaine, Democrat from Virginia Mr Kaine said the US public 'is overwhelmingly opposed to the US waging war on Iran' and said Mr Trump displayed 'horrible judgment'. Max Rose, former member of Congress, Democrat Now a senior adviser to the progressive veterans' group 'VoteVets', Mr Rose said Mr Trump's decision to launch direct strikes against Iran without congressional authorisation is illegal. He added: 'This conflict is his and the Republicans who have abrogated all their responsibilities.' REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
34 minutes ago
- Straits Times
Sheltering in a bunker, Iran's supreme leader names potential successors
Iran's Supreme Leader Ayatollah Ali Khamenei has suspended electronic communications to make it harder to find him. PHOTO: REUTERS Follow our live coverage here. Wary of assassination, Iran's supreme leader mostly speaks with his commanders through a trusted aide now, suspending electronic communications to make it harder to find him, three Iranian officials familiar with his emergency war plans say. Ensconced in a bunker, the supreme leader, Ayatollah Ali Khamenei, has picked an array of replacements down his chain of military command in case more of his valued lieutenants are killed in strikes by Israel or the US, which dropped bombs on three nuclear sites in Iran on June 21. The attack, which President Donald Trump announced that night, brings the US military directly into Israel's war with Iran after days of uncertainty about whether he would intervene in the conflict, and marks the first time since the 1979 Islamic Revolution that the US has sent its Air Force to strike major facilities inside the country, an act of war. And in a remarkable move, the Iranian officials add, Mr Khamenei has even named three senior clerics as candidates to succeed him should he be killed as well – perhaps the most telling illustration of the precarious moment he and his three-decade rule are facing. Mr Khamenei has taken an extraordinary series of steps to preserve the Islamic Republic ever since Israel launched a series of surprise attacks on June 13. In only a few days, the Israeli attacks have been more intense and have caused more damage in Tehran than Saddam Hussein did in his entire eight-year war against Iran. Iran appears to have overcome its initial shock, reorganizing enough to launch daily counterstrikes of its own on Israel. Iran's top officials are also quietly making preparations for a wide range of outcomes as the war intensifies, according to the Iranian officials, who insisted on anonymity because they were not authorised to speak publicly about the ayatollah's plans. Peering inside Iran's closely guarded leadership can be difficult, but its chain of command still seems to be functioning, despite being hit hard, and there are no obvious signs of dissent in the political ranks, according to the officials and to diplomats in Iran. Mr Khamenei, 86, is aware that either Israel or the US could try to assassinate him, an end he would view as martyrdom, the officials said. Given the possibility, the ayatollah has made the unusual decision to instruct his nation's Assembly of Experts, the clerical body responsible for appointing the supreme leader, to choose his successor swiftly from the three names he has provided. NYTIMES Join ST's Telegram channel and get the latest breaking news delivered to you.
