Lebanese Government to seek new IMF program, policy statement states

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

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 an agreement with the IMF for funding in 2022, contingent upon reforms being implemented by the authorities.

Finance Minister Yassine Jber, who was appointed as part of the new government formed earlier this month, said that an IMF delegation is expected to visit Lebanon during March.

Jaber confirmed that he met with the IMF resident representative in Lebanon Frederico Lima and that the government intends to continue reforms.

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 government's policy statement reflects the change in power balance. It does not use language that was used in years past to justify a Hezbollah role in defending Lebanon. Instead, it says "we want a country that can decide between war and peace".

In the statement, it said that Lebanon must adopt a national strategy for security and an international policy to "neutralize" conflicts.

According to a cabinet statement, the Lebanese Government will resume oil and gas exploration in the energy sector. The cabinet statement said that the government intended to create a Ministry of Technology and Artificial Intelligence.

The statement stated that the Lebanese Government believed it had an opportunity with a new administration in Syria to begin a serious dialog aimed at demarcating and controlling the borders, and working to solve the issue of Syrian refugees in Lebanon.

(source: Reuters)