Lebanon Seeks Recovery Funding and Financial Reforms in Bangkok

On the fourth day of the International Monetary Fund (IMF) and World Bank Group annual meetings in Bangkok, the Lebanese delegation, headed by Finance Minister Yassin Jaber, continued its series of working meetings focused on financing recovery projects, supporting fiscal and tax reforms, creating job opportunities, upgrading land border crossings, and enhancing financial and banking cooperation between Lebanon and Syria.

In this context, Jaber and Economy and Trade Minister Amer Bsat met with Fawzi Yousef Al-Hunaif, Director General and Chairman of the Board of Directors of the Arab Fund for Economic and Social Development.

The meeting was also attended by Director General of Finance George Maarawi, and Finance Minister's advisors Claudine Karky and Zeina Qasim, who also accompanied the meetings with the IMF and the International Organization for Migration.

The meeting with the Arab Fund discussed preparing a portfolio of projects under a clear program that combines financing, technical assistance, and capacity building, alongside support for the private sector and small and medium-sized enterprises. The Lebanese side stressed the importance of coordination with the World Bank and the European Union to ensure integrated support and enhance its impact.

Al-Hunaif affirmed "the Fund's readiness to continue supporting Lebanon, provided that the Lebanese side prepares a practical proposal to be followed up in the next phase."

Regarding fiscal reform, the Ministry of Finance delegation, which included Maarawi, Karky, and Qasim, met with a delegation from the IMF's Fiscal Affairs Department led by Deputy Director Ali Abbas. The discussions covered the Medium-Term Fiscal Framework, strengthening public revenues, improving the efficiency of tax and customs administration, as well as priorities for technical assistance to modernize systems and develop public financial management. The IMF delegation confirmed its continued support for Lebanon, and it was agreed to maintain regular technical coordination to ensure the sustainability of reforms.

In a meeting with Song Ah Lee, Deputy Director General of the International Organization for Migration, Jaber and Bsat discussed the organization's programs in Lebanon, particularly support for Syrian displaced persons and youth employment, and utilizing available data on the conditions of displaced persons and return areas to support government decisions.

The Lebanese side presented the national job creation program, which includes "Cash for Work" and support for small and medium-sized enterprises, complementing cash transfer programs. They called for integrating the organization's funding into this program to expand benefits and enhance impact, which Lee welcomed, expressing the organization's willingness to contribute to financing and support mobilizing additional resources.

The meeting also addressed upgrading land border crossings with Syria and equipping them with scanners to facilitate trade and tourism movement, enhancing regional economic connectivity in cooperation with the World Bank, alongside the role of the Lebanese diaspora in supporting the economy and the issue of voluntary return for displaced persons.

In the Lebanese-Syrian file, an expanded meeting was held with the Syrian delegation, which included Finance Minister Mohammad Yasar Barnea and Governor of the Central Bank of Syria Safwat Rislane. On the Lebanese side, Ministers Jaber and Bsat and Governor of Banque du Liban Karim Saeed participated, along with Maarawi, Qasim, and Karky.

The two sides discussed ways to enhance financial and banking cooperation, the file of Syrian deposits in Lebanese banks, confirming that their treatment would be similar to that of other depositors according to established legal frameworks. They also discussed organizing banking operations and transfers, and exchanging information regarding beneficial owners, to support anti-money laundering efforts and compliance with international standards.

The two governors agreed to form a joint technical working team to follow up on these files and propose practical solutions, with subsequent meetings to be held to complete the discussions. Jaber affirmed that the meeting constitutes a fundamental step towards building an integrated financial and economic relationship between Lebanon and Syria, based on trust and transparency.