Lebanon’s IMF Talks Advance, but Obstacles Still Block a Deal
Washington meetings kept Lebanon’s IMF talks alive, but unresolved banking reforms, war damage, and fiscal challenges still stand in the way of a program.
Lebanon and the IMF are still discussing a potential financing program, but there is no new staff-level agreement yet. Finance Minister Yassine Jaber said the meetings in Washington were “good” and that Lebanon wants to start with a staff-level agreement before moving to a full program. The war has slowed progress and, according to Jaber, caused an estimated $7 billion in damage. Reuters reported that Lebanon and the IMF were also discussing rapid financing in the $800 million to $1 billion range for budget and humanitarian support. Reuters said it could not independently verify the Bloomberg report. Key reform files still include amendments to the bank resolution law, work on deposit recovery and financial stability legislation, and a medium-term fiscal framework. The reform priorities broadly match issues the IMF has flagged in recent missions. Lebanon and the IMF are still talking, but Washington did not deliver a breakthrough Lebanon’s latest round of talks with the International Monetary Fund in Washington produced a familiar result: public signs of engagement, but no final breakthrough. Lebanese officials described the meetings as constructive, while the IMF said talks on a potential financing program are progressing. Still, the discussions stopped short of a new staff-level agreement , which remains the next major milestone if Lebanon wants to unlock a broader program. Finance Minister Yassine Jaber gave the clearest official summary after the meetings. He told Reuters that Lebanon had “good” meetings with the IMF and remained committed to securing a lending program. He added that the government’s aim is to reach an IMF agreement, starting with a staff-level agreement and then moving to a program. “Our aim as a government is to reach an agreement with the IMF on a program. We will start with an SLA and then progress to a program.” War damage has pushed reforms into a harder phase The biggest complication is the war. Jaber said current events had delayed the p