Thursday, July 7, 2022
HomeDubaiLebanon to start virtual talks with IMF on Jan. 24

Lebanon to start virtual talks with IMF on Jan. 24


Lebanese officials will start talks with the International Monetary Fund on Monday, an official government source told Reuters.

An IMF spokesperson also told Reuters on Saturday that a team will start virtual talks with Lebanese authorities next week.

For the latest headlines, follow our Google News channel online or via the app.

The Lebanese government has said it hopes to reach an initial agreement with the fund for financial support between January and February. Lebanon is in the grip of an unprecedented financial crisis and an IMF deal is widely seen as the only way for it to secure aid.

The fund said in December it was assessing a $69 billion figure announced by Lebanese officials for losses in the country’s financial sector.

Disagreements in Lebanon over the size of the losses and how they should be distributed torpedoed IMF talks in 2020. The central bank, banks and political elite rejected figures set out in a government plan that was endorsed by the IMF at the time.

Lebanon’s Prime Minister Najib Mikati said in September that the financial recovery plan to be drawn up by his cabinet will include a fair distribution of losses suffered by the financial system, but the cabinet hasn’t convened since October.

It will convene again on Monday to discuss the 2022 budget, but no clear details have been released about the recovery plan.

The Lebanese financial system collapsed in 2019 because of decades of corruption and waste in the state and the unsustainable way it was financed. The trigger was slowing inflows of hard currency into the banking system, which lent heavily to the government.

Several reforms the IMF would likely seek, including cutting subsidies and unifying the numerous exchange rates in Lebanon’s chaotic cash economy, are already becoming realities as hard currency dries up, political sources say.

Read more:

Lebanon’s PM Mikati to meet Kuwait’s foreign minister al-Sabah in Beirut

Lebanon draft budget applies range of FX rates: Official source

Lebanon judges to visit Paris over central bank chief probe



Source link

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -
Google search engine

Most Popular

Recent Comments