Lebanese Government to seek new IMF program, policy statement states

According to a policy document approved by the Cabinet late Monday, the new government in Lebanon will negotiate with IMF for a new program and work on the financial default of the country and its public debt.

A copy of the statement was reviewed by and it stated that the government would strive to achieve an economic revival, which could only be accomplished through restructuring the financial sector.

Since 2019, Lebanon has been experiencing a deep economic crisis. Its financial system collapsed due to massive state debts. This led to a default by the government in 2020, and the freezing of depositors' savings.

Beirut has reached a draft financing deal with the IMF for 2022, contingent upon reforms which have not been delivered by the authorities.

The National News Agency of Lebanon reported that Finance Minister Yassin Jamber, who assumed office earlier this month as part a new coalition government, met with Frederico Lima the IMF Resident Representative for Lebanon.

Lebanon's political scene has changed dramatically since Hezbollah - a longtime dominant force in Lebanese affairs - was severely beaten in the war last year with Israel.

The statement reflected the change in power balance by not using language that in previous years was used to legitimize Hezbollah's role in defending Lebanon. Instead, it said "we want a country that can decide between war and peace".

In the statement, it was stated that a national strategy for security and an international policy to "neutralize" Lebanon from conflict is needed.

According to a cabinet statement that also revealed plans for establishing a Ministry of Technology and Artificial Intelligence, the Lebanese Government will resume oil and gas exploration in the energy sector.

The statement stated that the Lebanese Government believes it can start a serious dialogue with the new administration of Syria following the ouster Bashar al-Assad. This will include demarcating and controlling the borders, and working on the issue of Syrian refugees in Lebanon.

(source: Reuters)