The International Monetary Fund on Thursday outlined a set of economic and banking reforms Lebanon must make sustained progress on to secure a new support program. They include enforcing the bank restructuring law and passing legislation to address the financial gap, as well as preparing a 2027 budget and a medium-term fiscal framework.
Fiscal and banking reform requirements
IMF spokesperson Julie Kozack told reporters at a press conference: "Sustained progress on key reforms is required, including bringing the bank restructuring law into force and passing appropriate legislation to address the financial gap in line with international standards."
Kozack added that reaching a new program would also require preparing a 2027 budget and a medium-term fiscal framework "consistent with the sustainability of the country's public debt."
Review of the bank restructuring law
Lebanon recently approved a new law to restructure the banking sector, a move welcomed by the IMF. However, Lebanese President Joseph Aoun referred the law to the Constitutional Council this week for review.
The referral has raised concerns among Lebanese reformers that the law could be rolled back, as it is considered one of the key pieces of legislation required for reform, potentially affecting Lebanon's prospects of securing support from the IMF.
Agreement in principle since 2022
Lebanon signed an agreement in principle with the IMF in April 2022, more than two years after its financial system collapsed.
