Lebanese Finance Minister Reaffirms Government Commitment to Reform Despite Conflict Fallout and Economic Fragility

The Lebanese delegation, led by Finance Minister Yassine Jaber, continued its meetings on the fifth day of the International Monetary Fund (IMF) and World Bank Group annual meetings in Bangkok. The discussions centered on completing financial and banking reforms, mobilizing support for reconstruction, and strengthening Lebanon's position in regional connectivity projects. Jaber affirmed that the government is proceeding with the reform path despite the repercussions of regional conflict, economic fragility, and difficult humanitarian conditions, calling for making connectivity in energy, transport, and trade a priority in the World Bank's programs for the region.

During the meeting of Arab Governors with World Bank Group President Ajay Banga, Jaber emphasized in his intervention that Lebanon is once again facing the repercussions of a destructive regional conflict, alongside its economic and humanitarian crises. He confirmed the government's commitment to addressing the banking crisis according to international standards and adopting strict fiscal discipline.

Jaber outlined the key milestones of the reform path, noting that the amendment to the law on restructuring bank situations is expected to be completed within days, that the draft law on the financial gap is before Parliament, and that the budget draft has been submitted within the constitutional deadline. He also discussed the reform of public institutions, their transformation into companies, and subjecting them to audits; the digitization of Ministry of Finance services and enabling electronic payments; and measures aimed at removing Lebanon from the Financial Action Task Force (FATF) grey list.

Jaber appreciated the World Bank's support for Lebanon, particularly the Reconstruction Fund launched with an initial loan of $250 million. He called for giving priority to regional connectivity projects in the Group's programs, pointing to the capacity of Lebanese ports to serve as a gateway to the region, thereby enhancing Lebanon's role in transport and trade flows.

The meeting addressed the priority programs adopted by the World Bank Group for the Arab region. The joint statement by the Arab Governors focused on four priorities: recovery and reconstruction, regional connectivity, mobilizing private capital through guarantees and local currency financing, and enhancing the representation of Arab expertise in leadership positions within the Group.

For his part, Banga affirmed that Lebanon, Syria, and Iraq face an opportunity not seen in many years, stressing the Bank's commitment to supporting these countries in areas of regional connectivity and the private sector. He called for focusing on a limited number of clear priorities in Country Partnership Frameworks to ensure tangible impact.

In addition to Jaber, the meeting was attended by Minister of Economy and Trade Amer Bsat, Director General of Public Finance Georges Maarawi, and Jaber's advisors Zeina Kassem and Claudine Kerki.

In a meeting with UK Secretary of State for International Development Kemi Badenoch and her accompanying delegation, Jaber discussed ways to support reconstruction efforts and the contribution of donor countries to increasing the fund's size from $250 million to $1 billion, which is the target Lebanon hopes to reach.

Jaber presented the government's reform priorities. The discussion covered the reform of public institutions as a fundamental pillar for addressing the root causes of the crisis, including transforming the electricity, airport, and telecommunications sectors into companies and subjecting them to audits by international firms to enhance transparency and governance and reduce burdens on public finances.

The two sides also discussed strengthening British cooperation with Lebanon, particularly technical assistance in the field of digital transformation. Badenoch commended the reform efforts led by Jaber, confirming her country's readiness to support Lebanon bilaterally and in multilateral institutions, while the Finance Minister invited her to visit Lebanon.

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