The new resident representative of the International Monetary Fund (IMF) in Beirut, Federico Lima, continued his tour following his appointment to the new position, visiting the French Ambassador to Lebanon, Anne Grillo. She welcomed Lima's appointment, which comes after a decade of the position being vacant, emphasizing that this step reaffirms the IMF's commitment to Lebanon and its people.
Grillo confirmed that France, like the international community as a whole, remains determined to support the Lebanese in implementing urgent measures and necessary structural reforms to lift the country, as negotiated last April. She reminded that France will continue to mobilize all its resources to ensure adherence to the commitments outlined in the agreement, specifically decisions by the government and the central bank regarding the restructuring of the banking sector and unifying exchange rates, as well as passing the four laws identified as prerequisites (2022 budget, capital control, lifting banking secrecy, and restructuring the banking sector), followed by the approval of the IMF board for the program, which would allow for the disbursement of the first installments of loans.
The statement issued by the French embassy following the meeting noted: "Given the ongoing deterioration of living conditions for the Lebanese, stabilizing the economic and financial situation has become an urgent necessity to put the country on the path to recovery. Only the IMF, supported by a group of multilateral and bilateral financiers, has the ability to set Lebanon on this path. There is no other option in the interest of all Lebanese. The IMF program is the only one that offers new financing (a loan from the fund of $3 billion and contributions from funding entities totaling approximately $7 billion to meet financing needs), and at the same time, the initial reform steps that will curb hyperinflation will stabilize families' purchasing power and ensure a calmer environment for the private sector.
The current government, particularly through the efforts of its Deputy Prime Minister, Mr. Saadeh Chami, has laid the groundwork for the agreement approved by the three heads of executive and legislative authorities, which will address the current systemic crisis in all its dimensions. All mentioned bills must be adopted without delay and implemented urgently, according to the timeline agreed upon by Lebanon and the IMF last April. France, in cooperation with its European and international partners, will use all available means to continue supporting the full enactment of these measures and their proper application by all concerned parties."
In the Parliament, the head of the Finance and Budget Committee, Ibrahim Kanaan, and the head of the Administration and Justice Committee, George Adwan, met with the newly appointed IMF representative in Beirut, Federico Lima. During the meeting, they discussed developments regarding the IMF's mission in Lebanon, particularly concerning the framework agreement between the fund and the Lebanese government, as well as the related legislations in the context of the required reforms to restore both local and international trust in Lebanon, including the 2022 budget, banking secrecy law, and banking restructuring, along with the capital control law.
The importance of coordinating with the IMF regarding the aforementioned legislations was emphasized, through communication with the government and the IMF's team, to complete the 2022 budget draft according to the amendments discussed by the Finance and Budget Committee with the government and relevant committees. Adwan and Kanaan stressed that the Parliament is functioning within two bounds: the first is to protect constitutional rights of the people, especially depositors, and the second is to put Lebanon on the path to financial and economic rescue and recovery.
In this context, the Finance and Budget Committee invited the government and the Central Bank representatives to an exceptional meeting on Monday, the 27th, to discuss the pending items in the budget, particularly the issue of exchange rate unification to achieve a balance between revenues and expenditures, as well as the legislations related to the recovery and rescue plan, as approved in the last government meeting, to take appropriate action thereafter. The Finance and Budget Committee and the Administration and Justice Committee will continue to review the proposed projects with a focus on legal and productive aspects in cooperation with relevant authorities.
