MOSCOW (Pakistan Point News / Sputnik - 08th April, 2022) The International Monetary Fund (IMF) and Lebanon reached an agreement under which the country can receive about $3 billion over four years to implement a comprehensive economic reform program, IMF Mission Chief to Lebanon Ernesto Ramirez Rigo said on Thursday.
Beirut and the IMF began the official negotiations on the economic recovery of the country in late January.
"The Lebanese authorities and the IMF team have reached a staff-level agreement on comprehensive economic policies that could be supported by a 46-month Extended Fund Arrangement (EFF) with requested access of SDR 2,173.9 million (equivalent to about US$3 billion)," Ramirez Rigo said at the end of the mission, as quoted by the IMF.
According to the IMF, the agreement provides for a comprehensive economic reform program aiming to rebuild the Lebanese economy, restore financial sustainability, remove obstacles to job-creating growth and increase social and reconstruction spending.
The agreement reached must be first approved by the IMF management and the Executive Board. In addition, the Lebanese government pledged to undertake several important reforms ahead of the IMF board meeting, the IMF said.
Lebanon has suffered a deep economic crisis since 2019, which led to the collapse of the national banking system, the Lebanese pound plummeting 15 times, business crumbling and a major rise in prices. The crisis left much of the population below the poverty line. The hardships led to mass anti-government protests and the resignation of two cabinets during this period.
The Lebanese authorities have repeatedly sought help from the international community, but it has required that the country's leadership first undertake effective financial and economic reforms before receiving financial assistance, including through the IMF.
