Reforms have stopped, and the situation in Lebanon is "very dangerous"

 

The International Monetary Fund asked the Lebanese government to stop borrowing from the central bank on Thursday, warning that the country was in a very hazardous position a year after making reform commitments that have not been carried out.

Ernesto Rigo, head of the IMF mission in Lebanon, stated during a news conference that the government should expedite the fulfilment of the bailout's criteria.

He noted the "very slow" development and remarked, "One would have expected more in terms of implementation and approval of legislation."

He declared, "Lebanon is in a very dangerous situation."

Nearly a year ago, Lebanon signed a staff-level agreement with the IMF, but has yet to fulfil the requirements to obtain a complete program, which is largely seen as essential for its recovery from one of the worst financial crises in history.

Since 2019, the currency has lost around 98% of its value against the US dollar, crippling the economy and causing triple-digit inflation, skyrocketing poverty, and a wave of exodus.

After decades of wasteful expenditure and corruption among the governing elites, the crisis emerged in 2019, prompting banks that made large loans to the government to impose restrictions on access to deposits.