Lebanese Minister of Finance in the caretaker government, Youssef Khalil, stated that the International Monetary Fund (IMF) report released in late June reflects the current financial and economic situation. In a statement commenting on the latest report, he emphasized that "the recommendations regarding proceeding with reforms reaffirm our commitment to advancing them due to the urgent need to set the path for recovery, as failing to implement these reforms incurs significant costs that hinder any possibility of reviving the economy and placing the country on a trajectory of recovery."
He noted that progressing with reforms "could lead to growth rates exceeding those projected in the report, based on the Lebanese economy's ability to adapt and overcome challenges, a trend we are beginning to witness today in some productive sectors." He pointed out that developments have started to create a positive impact on public finances, particularly concerning the unification of the exchange rate for the collection of fees and taxes, restoring the treasury's financial capacity, and enhancing liquidity management, which contributes to financial and monetary stability.
Khalil mentioned that despite significant challenges, the ministry is focused on completing the 2023 budget project, which constitutes a continuation of the corrective measures initiated following the approval of the 2022 budget, indicating that this would facilitate financial regularity and that the budget project will soon be submitted to the Council of Ministers. He also noted that the ministry aims to secure the public sector's needs by enhancing treasury revenues within the macroeconomic frameworks, without posing a risk to financial and monetary stability.
Additionally, Khalil revealed that the World Bank has approved financing for an additional loan to continue the project aimed at supporting the poorest households, given the state's limited financial capabilities and the scarcity of budget allocations for social spending.
With regard to Lebanon's commitments to international organizations and donors, he confirmed that the Ministry of Finance is systematically fulfilling its outstanding obligations, coordinating and communicating with these donor entities regarding the arrears that Lebanon had failed to pay on time. He concluded by praising the IMF for its continued support to Lebanon to enable it to emerge from its current crisis.
