IMF Delegation Members: We Value a Partnership Based on Transparency, Mutual Respect, and Reliable, Implementable Reforms
Deputy Fouad Makhloufi told the International Monetary Fund (IMF) mission, led by Ernesto Riogno, in the presence of the Fund’s new Resident Representative in Lebanon, Yahya Saied, and several MPs, ambassadors, and political and social figures: “We value a partnership based on frankness, mutual respect, and credible, implementable reforms. Our international partners play an important role, but the ultimate responsibility for Lebanon’s recovery lies with us. I would like to take this opportunity to welcome Mr. Yahya Saied, the new Country Manager for the IMF program in Lebanon.”
Makhloufi added during a welcome dinner he hosted for the mission at his residence in Beirut: “The adoption of the bank restructuring law was a crucial and necessary achievement. It established a framework for assessing the condition of banks, addressing distressed institutions, strengthening supervision, and beginning the rehabilitation of the banking sector. However, this law cannot be effectively implemented in isolation from other reforms. The next essential step is the adoption of a fair and credible law to identify and address the fiscal gap.”
He further stated: “The government has already referred the fiscal gap bill to the Parliamentary Finance and Budget Committee, which we consider an important step. However, the bill in its current form requires fundamental amendments before it can constitute a sound economic framework, be technically credible, be implementable, and align with international standards.”
He observed that “the clearest and most effective path is for the government to withdraw the current bill, address its fundamental flaws, and then submit an amended text capable of garnering the confidence of the Chamber of Deputies and international credibility. If the government decides to retain the current bill, we would greatly welcome it if the IMF provided the Chamber of Deputies with clear, detailed technical guidance on the provisions that require amendment. This would help MPs work more efficiently and accelerate the achievement of a fair, implementable law that complies with international standards.”
“The Chamber of Deputies will fulfill its full legislative responsibility. However, the presence of clear technical standards and close cooperation with the IMF will help us avoid further delays and ensure that the final law actually addresses the crisis, rather than postponing or deferring it.”
He pointed out that “the fiscal gap law is not merely an accounting exercise. Without a credible law, the bank restructuring cannot be completed, confidence cannot be restored, and the financial sector cannot resume its fundamental role in serving citizens and financing the economy. We must also confront the serious expansion of the cash economy, which undermines tax collection, limits transparency, facilitates money laundering and the financing of illicit activities, and exposes Lebanon to the risk of isolation from the international financial system. However, the cash economy cannot be tackled through restrictions or statements alone. Citizens and businesses will not return to formal financial channels unless they have access to a sound, credible banking system capable of meeting their needs.”
He emphasized that “the Chamber of Deputies must thoroughly scrutinize the bill, introduce the fundamental amendments it requires, and submit a credible text for vote without unjustified delay.”
