IMF and Lebanon discuss debt, budget, and reconstruction financing

The Lebanese Ministry of Finance announced on Monday that several meetings have taken place between its directors and experts and the International Monetary Fund (IMF) delegation, led by Ernesto Ramirez-Rigo, the IMF’s mission chief for Lebanon. 

The delegation is currently in Beirut for discussions aimed at evaluating Lebanon’s economic progress and paving the way for a new

The discussions, which will continue on Tuesday, are particularly significant as they seek to assess the progress made on key economic files and outline the next steps toward a potential new agreement with the IMF.

Last week, Julie Kozack, the IMF’s Director of Communications, stated that the mission’s focus in Beirut would be on economic development and post-conflict reconstruction. Lebanon has been grappling with a fragile ceasefire since November 27, following two months of open conflict with Hezbollah.

Beyond the current meetings, Kozack hinted at broader economic reform efforts, emphasizing the need for a comprehensive reform program to stabilize Lebanon’s economy and attract international assistance.

According to the Lebanese Ministry of Finance, the talks are part of ongoing efforts to enhance fiscal transparency and drive structural reforms. The meetings are addressing several key areas:

• Financial performance and budget planning
• Public debt management and restructuring
• Preparations for the 2026 national budget
• Funding strategies for reconstruction projects, particularly after the recent conflict with Israel

A major focus is on Lebanon’s debt crisis, with officials reviewing past financial data, assessing debt repayments and obligations to creditors, and examining the external debt service.

The IMF visit was initially announced in February by Finance Minister Yassine Jaber, following a meeting with Frederico Lima, the IMF representative in Lebanon. On the same day, the IMF reiterated its willingness to engage in negotiations for a new financial support program.

Lebanon’s new government has pledged to revive stalled economic reforms to rescue the country from its prolonged financial crisis, which has persisted since 2019.

In April 2022, the former government of Najib Mikati signed a preliminary agreement with the IMF, committing to a series of economic and financial reforms as preconditions for unlocking $3 billion in assistance over four years. However, Lebanon failed to implement key reforms, including the restructuring of its collapsed banking sector, leaving the agreement largely unexecuted.

European Support and Development Initiatives

In parallel with the IMF discussions, the National News Agency (ANI) reported that Finance Minister Yassine Jaber met with a representative from the European Bank for Reconstruction and Development (EBRD) on Monday. 

Their discussions centered on development projects funded by the EBRD in Lebanon, particularly in the private sector and energy industry, as well as the technical assistance provided to public institutions.

With Lebanon still facing severe financial instability, the outcome of the current IMF negotiations could be crucial in determining whether the country can secure new funding and implement long-overdue reforms. The coming days will reveal whether Lebanon is truly ready to take the necessary steps to regain international financial confidence.