BEIRUT: Lebanon’s government needs to enact a rescue plan that rebuilds confidence in the economy and tackles root causes behind the country’s financial crisis, a senior International Monetary Fund official said in comments published on Wednesday.
“The priority for the IMF is the need for the government to approve a rescue plan that rebuilds confidence in the Lebanese economy and helps improve the situation for citizens,” an-Nahar newspaper quoted Jihad Azour, director of the Fund’s Middle East and Central Asia Department, as saying.
BACKGROUND
12% — The IMF said last week it expected Lebanon’s GDP would shrink 12 percent in 2020.
A financial and economic crisis without precedent has battered Lebanon for months, halving the value of its currency, hiking prices and fueling unrest.
A draft government rescue plan floated this month said that Lebanon would need $10 billion to $15 billion in foreign aid and that IMF funding could play a role.
Finance Minister Ghazi Wani said that the government’s plan would meet IMF recommendations.
The Fund said last week it expected Lebanon’s GDP would shrink 12 percent in 2020. A coronavirus outbreak has also compounded woes in the country which sank deep into crisis last year after capital inflows slowed and protests erupted against the ruling elite.
