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The International Monetary Fund (IMF) said on Thursday that Lebanon needs to implement a number of key reforms in the economy and the banking sector to agree on a new program from the Fund.
IMF spokesperson Julie Kozak told journalists during a press conference "Continuous progress in key reforms is required, including the implementation of the law to address the situation of banks and the adoption of appropriate legislation to address the fiscal gap in line with international standards".
She added that it also requires the preparation of a budget for 2027 and a medium-term financial framework "in line with the sustainability of the country's debt".
Lebanon signed a preliminary agreement with the Fund for the first time in April 2022, more than two years after the collapse of its financial system following decades of reckless spending and corruption by the ruling elites.
Lebanon recently passed a new law to restructure the banking sector, which the Fund welcomed, but Lebanese President Joseph Aoun referred the law this week to the Constitutional Council, leading to its review.
This move raised concerns among reformers in Lebanon that the country is backtracking on this important legislation, which could jeopardize its hopes of receiving support from the International Monetary Fund.
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