An IMF spokesperson told Reuters on Saturday about the
virtual talks with Lebanese authorities. The Lebanese authorities will discuss
the economic recovery and measures to improve the living conditions of the
people.
Reportedly, the Lebanese government has said it hopes to
reach an initial agreement with the IMF for financial support between January
and February. The meeting is crucial for the government to get foreign aid to
support the economy of the country.
The IMF said in December that it was assessing a $69 billion
figure announced by Lebanese officials for losses in the financial sector of
the country. However, disagreements in Lebanon over the size of the losses and
distribution of the amount jeopardised IMF talks in 2020. The central bank,
regional banks and political elite rejected figures set out in a government
plan that was endorsed by the IMF at that time.
Reportedly, the talk was also on hold amid a row over a
probe into the 2020 deadly Beirut port explosion. Lebanon’s economic crisis
deepened more after the tragic accident. The economic crisis pushed more than
half the population into poverty and hunger. The Beirut port explosion was
caused by a large amount of ammonium nitrate stored unsafely for years. The
tragic incident killed over 200 people. The financial system of the country
collapsed in 2019 because of decades of corruption and waste in the state and
the unsustainable way it was financed.
According to political sources, several reforms the IMF
would likely seek in the meeting, including cutting subsidies and unifying the
numerous exchange rates in Lebanon's chaotic cash economy.
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