After Lebanon received a $34 million loan from the World Bank to restore the budgetary management of public services, several rumors started circulating on Monday, claiming that this amount would be distributed to 500 employees of the Ministry of Finance, a piece of information the said Ministry's press office rushed to deny.
"In view of the persistence and intensification of these rumors," a statement from the Ministry of Finance said, "what is being reported is neither a discovery nor a scandal. The World Bank has initiated a project with the Ministry of Finance to support its capacities and enable it to launch the reform process for financial recovery and economic progress. Any process of reform, recovery or economic progress begins with the Ministry of Finance."
The press release recalls that the budget management project is financed by a $28.5 million loan from the International Bank for Reconstruction and Development (IBRD) and a $5.5 million grant from the Lebanon Finance Facility (LFF), a multi-donor trust fund established in December 2020. The project will allocate $14.1 million to ICT systems, including hardware, software, licenses and maintenance, and $12.3 million over three years to disbursements linked to performance-based conditions. Furthermore, $7.6 million will be devoted to green energy investments and other essential technical assistance and capacity-building activities. The project design considers the public financial management programs of other development partners, in order to strengthen synergies and mobilize support.
Consequently, talk of an allocation of $65,000 per employee is "the stuff of fantasy." The press release also stresses that the withdrawal of any loan amount is linked to conditions and a solid governance system, which will also be subject to the supervision of a steering committee comprising numerous experts, an advisory committee to provide advice, an independent third-party verification process and periodic audits and reviews by independent technical bodies.
It was also stated that this project requires a decree to accept the donation, as well as a draft decree sent to Parliament to enact a law considering it a financial obligation for the state. "The Minister of Finance's discussions with the World Bank are merely negotiations, not the signing of an agreement," the text elaborates.
On February 14, the World Bank's Board of Executive Directors approved a $34 million project to help Lebanon restore the public administration's core budget management functions. It will help restore public services to ensure the well-being of citizens and lay the foundations for a sustainable economic recovery.
"In view of the persistence and intensification of these rumors," a statement from the Ministry of Finance said, "what is being reported is neither a discovery nor a scandal. The World Bank has initiated a project with the Ministry of Finance to support its capacities and enable it to launch the reform process for financial recovery and economic progress. Any process of reform, recovery or economic progress begins with the Ministry of Finance."
The press release recalls that the budget management project is financed by a $28.5 million loan from the International Bank for Reconstruction and Development (IBRD) and a $5.5 million grant from the Lebanon Finance Facility (LFF), a multi-donor trust fund established in December 2020. The project will allocate $14.1 million to ICT systems, including hardware, software, licenses and maintenance, and $12.3 million over three years to disbursements linked to performance-based conditions. Furthermore, $7.6 million will be devoted to green energy investments and other essential technical assistance and capacity-building activities. The project design considers the public financial management programs of other development partners, in order to strengthen synergies and mobilize support.
Consequently, talk of an allocation of $65,000 per employee is "the stuff of fantasy." The press release also stresses that the withdrawal of any loan amount is linked to conditions and a solid governance system, which will also be subject to the supervision of a steering committee comprising numerous experts, an advisory committee to provide advice, an independent third-party verification process and periodic audits and reviews by independent technical bodies.
It was also stated that this project requires a decree to accept the donation, as well as a draft decree sent to Parliament to enact a law considering it a financial obligation for the state. "The Minister of Finance's discussions with the World Bank are merely negotiations, not the signing of an agreement," the text elaborates.
On February 14, the World Bank's Board of Executive Directors approved a $34 million project to help Lebanon restore the public administration's core budget management functions. It will help restore public services to ensure the well-being of citizens and lay the foundations for a sustainable economic recovery.
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