The return of the Lebanese delegation to the meetings of the International Monetary Fund: Reforms is a prerequisite for support

The return of the Lebanese delegation to the meetings of the International Monetary Fund: Reforms is a prerequisite for support

The Lebanese delegation, headed by Minister of Finance, Yassin Jaber, concluded its participation in the spring meetings of the International Monetary Fund and the World Bank in the American capital, DC, with a set of important meetings that dealt with the most important economic and financial issues facing Lebanon at this critical stage. One of the most prominent of these meetings was the special meeting “financing Lebanon in the field of recovery and reconstruction”, through the Lebanese emergency assistance project (Leap), which aims to provide financial support to face the economic challenges that Lebanon suffers from.

Lebanon is at a crossroads: a commitment to reforms for a better future

During the meetings, Minister of Finance Yassin Jaber, on behalf of the Lebanese government, affirmed Lebanon’s commitment to the reformist path, stressing that “the country is facing a historical opportunity to restore the confidence of the international community and Lebanese citizens alike.” Jaber explained that the Lebanese government, with the support of the newly -elected President of the Republic, has begun to implement a package of structural reforms necessary to achieve financial and economic stability.

He pointed out that these reforms include many important aspects such as the approval of the 2025 budget, the launch of reforms in the banking confidentiality law, as well as the development of modern tax laws aimed at improving the tax system and enhancing governance and control in state institutions. The focus has also been on the reform of the energy, aviation and communications sectors, which is an essential part of the structural repair process.

Financial and monetary reforms: Building a strong and sustainable financial sector

The Lebanese Minister of Finance added that one of the most prominent steps that the government intends to take is to restructure the financial sector in Lebanon, through the approval of the “financial gap law” and the strategy of “restoring deposits”, a step aimed at ensuring a fair distribution of financial losses in accordance with international standards. He explained that these monetary reforms will be the basis for the process of rebuilding confidence in the Lebanese financial system, especially with regard to the Bank of Lebanon.

These reforms come within an ambitious plan to reform the financial and critical sector, which observers see as an essential step to ensure the stability of the Lebanese economy and restore confidence in local and international financial institutions.

Lebanon faces reconstruction challenges: International Support Request

With regard to the damages resulting from the financial crisis and previous wars, Jaber pointed out that Lebanon faces an urgent need for reconstruction and recovery, as the damage is estimated at about $ 11 billion. He stressed that the Lebanese government is seeking to obtain the support of the international community within the framework of the “Leap” program funded by the World Bank, which is one billion dollars, to be an essential tool for financing the recovery process.

Jaber stressed that “growth led by the private sector is the future of Lebanon, and this cannot be achieved without a real partnership with the international community.” These statements come at a sensitive time, as Lebanon is looking to enhance its economic relations with international institutions and donor countries, to achieve long -term stability.

International praise of Lebanese reforms

On the other hand, the Deputy Director General of the International Monetary Fund, Miguel Clark, praised meetings with the Lebanese delegation, describing it as “very good”. Clark said in a tweet via the “X” platform (Twitter) after the meeting: “I welcomed the reform of banking secrecy. We also discussed difficult and critical reforms of sustainable growth, and the efforts made to finance reconstruction.” He pointed out that the International Monetary Fund is still committed to continuing to work with Lebanon to prepare the required package of reforms, in line with the sustainable development goals.

Basic legal reforms: The “Financial Gap” law and “the restructuring of banks”

Regarding the file of legal reforms, informed sources revealed that the Lebanese government will begin during the next few weeks to discuss and approve the draft “financial regularity” law, or what is called “the financial gap law”. This law aims to determine the financial losses in the banking sector and how to distribute responsibility for these losses between banks and the Bank of Lebanon and the state, which will directly affect the fate of deposits and the rights of depositors.

The source also pointed out that this law is a basic step that paves the way for the approval of the “bank restructuring law”, which is expected to be presented soon to the House of Representatives. These reforms are expected to contribute to correcting the financial situation of Lebanon, and ensure the distribution of losses fairly and sustainable.

France and an invitation to the Lebanon Support Conference

In this context, France recently informed Lebanese officials that it is ready to invite the international community to hold an international conference to support Lebanon in Paris in July. However, France stressed that determining the date of the conference is linked to a significant progress in implementing the economic and financial reforms required by the international community.

This conference is expected to contribute to strengthening international support for Lebanon, especially in light of the crises it faces, whether political or economic. France is considered one of the most prominent countries that support Lebanon in its ordeal, and calls for providing financial aid that contributes to restoring economic stability in the country.

Lebanon has a decisive opportunity: Reforms first to obtain international support

According to the current data, the Lebanese government is striving to pass the basic reform laws before or with the beginning of the summer. Where Lebanese officials hope that the country will be able to approve the “financial gap law” in the coming weeks, so that the next step is to approve the “Restructuring of Banks” law after studying it in the specialized committees in Parliament.

A parliamentary source explains that “there is a close link between the laws of restructuring banks and the financial gap, as determining losses and distributing responsibilities constitute a basic basis for restructuring the banking sector in an organized and transparent manner.” The source suggests that these two laws be approved in Parliament within the next few months, which is considered very important to ensure the stability of the Lebanese financial sector.

Hope in the future: The role of reforms in restoring confidence and achieving stability

On the other hand, Lebanese officials hope that these reforms will contribute to enhancing the confidence of the international community in Lebanon. Many experts confirm that the completion of the required reforms may be a key to obtaining financial aid from the International Monetary Fund and the World Bank, in addition to the donor bodies and countries.

In this context, the role of the private sector is highlighted as a major engine for growth in Lebanon. Many observers consider that restoring confidence in the Lebanese financial system, by implementing the necessary reforms, will contribute to attracting investments, providing job opportunities and achieving economic stability in the long term.

Conclusion

The economic and financial reforms in Lebanon remain the main issue that will determine the fate of the Lebanese economy in the next stage. With the commitment to conduct the required reforms, Lebanon hopes that it can restore the confidence and support of the international community to achieve economic recovery and reconstruction. In the event that Lebanon is able to implement these reforms successfully, this will provide it with a real opportunity to return to the right path towards stability and prosperity.