An International Monetary Fund (IMF) mission, led by Mr. Ramirez Rigo, conducted virtual discussions from January 24 to February 11, 2022 with the Lebanese authorities on the framework and policies of an economic reform program that can be supported by the IMF. Engagement with the authorities will continue over the coming weeks.
Ramirez issued a statement:
“The unprecedented and complex nature of the Lebanese crisis requires a comprehensive economic and financial reform program to stabilize the economy, address deep-seated challenges, and lay the ground for sustainable and strong growth. Obtaining broad based buy-in for this multi-year program will be fundamental for its timely and decisive implementation. At the same time, strong upfront actions will be necessary to start turning the economy around and rebuilding confidence.Mr. Ramirez Rigo, International Monetary Fund (IMF) mission
Lebanon’s economic program would need to include targeted and timebound actions across the following five pillars:
- Fiscal reforms that ensure debt sustainability but also space to invest in social spending and reconstruction efforts.
- Restructuring of the financial sector to strengthen confidence and support the recovery.
- Reforming state-owned enterprises, and, particularly, the energy sector to provide better services without draining public resources.
- Strengthening governance, anti-corruption, and AML/CFT frameworks to enhance transparency and accountability
- A credible monetary and exchange rate system.