Lebanon is in an advanced stage of agreement talks with the World Bank

Caretaker Minister of Economy and Trade, Amin Salam, confirmed during an interview with Al-Sharq news channel that “Lebanon is in a very advanced stage” of discussions with the World Bank regarding a program that supports vital sectors of the economy.”

On the sidelines of his participation in the spring meetings of the International Monetary Fund and the World Bank, he pointed out that “the talks with the bank focused on sustainability programs that create growth in the economy,” noting that “he discussed a program that addresses economic issues and supports the technology and agricultural sectors and sectors that create job opportunities and economic activity.” Especially since Lebanon suffers greatly from these problems, and needs programs that address these crises.”

Salam announced that “the World Bank is still a great supporter of Lebanon in vital projects related to food security and social provisions, which have created a kind of stability in the recent period,” noting that “the programs are still in effect, represented in supporting full financing for more than 220,000 families who benefit.” Of these programs,” he pointed out that “the continuation and completion of these programs” was discussed, explaining that “the value of completing these programs ranges between 250 and 300 million dollars over two years.”

He said: “Lebanon has been suffering from a financial collapse over recent years, when decades of mismanagement and corruption turned into a simultaneous banking, debt and currency crisis, and inflation rates reached 192% during December of last year, according to data from the Central Statistics Department in the Presidency of the Council of Ministers.” . Pointing out that “the Red Sea crisis adds new inflationary pressures to Lebanon’s economy.”

He continued: “Last May, the World Bank allocated $300 million in additional financing to the poorest families in the country that is suffering from one of the worst economic and financial crises in history, according to the bank’s own description, which said at the time that this financing package would allow the continuation and expansion of the provision of cash transfers to 160,000 poor families for 24 months, and will support the development of a unified system of social safety networks in Lebanon. This package was part of a program approved in January 2021 to help Lebanon manage the economic crisis and the Corona epidemic crisis.”

Regarding the relationship with the IMF, Salam pointed out that “the Fund’s patience ran out and its officials were clear in the meetings.” If we do not act, the IMF will withdraw this opportunity from Lebanon, and we will be facing an unknown future in terms of restoring the confidence of the international community,” pointing out that “the Lebanese authorities and a team of International Monetary Fund experts have reached, since April 2022, an agreement at the expert level regarding economic policies.” The comprehensive plan that can be followed to benefit from the extended fund facility equivalent to 3 billion US dollars, but to date the agreement has not reached implementation, due to the delay of the Lebanese authorities in approving the required reforms.”

He pointed out that “the Lebanese delegation that came to Washington to attend the meetings does not have anything new to offer,” pointing out that “there is a political decision that obstructs the adoption of the necessary reform laws.”

He added: “The IMF is no longer willing to hear excuses, or talk without results,” and said: “Even the pressing files we have, such as the Syrian displacement file, which we use as papers to ask for more time.” But the Fund ran out of patience.”