“Because things have become clear, we need to move towards a final agreement”, said Ernesto Ramirez Rigo, head of the International Monetary Fund (IMF) mission to Lebanon, at the end of his meeting on Wednesday in Beirut with the Economic bodies, chaired by Mohamad Choucair. However, he did not give any further explanation of what seems clear, in his opinion.
The IMF mission is in Lebanon for a four-day visit. The purpose of the visit is to discuss with the Lebanese authorities and key economic players the progress made on key reforms.
In April 2022, Lebanon signed a preliminary Staff Level Agreement (SAL) with the IMF, with a view to receiving three billion dollars in aid. However, this aid is conditional on the implementation of a series of structural reforms.
To date, the political establishment has undertaken only a minimal part of the reforms demanded by the international community. It has undertaken an audit of the Central Bank’s assets. It has also passed a new banking secrecy law and enacted a zero deficit budget on schedule.
In an interview with MTV on Wednesday, Bank Audi’s Head of Research, Marwan Barakat, said that “the IMF is expected to announce a freeze on its negotiations with Lebanon until a Head of State is elected and an effective government formed”.
Since Lebanon signed the SLA, the executive and legislative branches of government have been passing the hot potato back and forth between themselves on the subject of reforms, without either of them assuming their responsibilities in this area.
Before leaving Lebanon, the IMF mission will hold a meeting with the press on Thursday, which will help find out more about the results of the visit and the IMF’s position on the slow pace of political reform.
