IMF Reaffirms Commitment to Support Lebanon in Implementing Endorsed Reform Agenda
Ernesto Ramirez Riego confirms IMF's support for Lebanon's financial reforms.
Translated by Qiyas from كونا — Original source
Beirut, September 19 (KUNA) -- The International Monetary Fund (IMF) reaffirmed on Saturday its commitment to supporting Lebanese authorities in formulating and implementing a comprehensive reform agenda that could be backed through an IMF program, noting that active discussions are ongoing to sustain this trajectory. This was stated in a statement issued by Ernesto Ramirez Rigo, Head of the IMF Mission to Lebanon, following the conclusion of the mission’s visit from September 15 to 19, which focused on macroeconomic prospects and progress on key economic and financial reforms in Lebanon.
Ramirez Rigo said that the conflict with Israeli occupation forces and security developments have inflicted “severe damage” on the economy and living conditions, alongside widespread internal displacement and infrastructure damage. He projected a “notable” contraction in economic activity in 2026, with inflation persisting and the current account deficit widening.
He welcomed progress in budget management and the approval of amendments to the law governing and resolving the situation of Lebanese banks, which provide an effective framework for addressing the banking sector’s challenges, emphasizing the importance of aligning the Financial Stability and Deposit Recovery Law with international standards.
The Mission Head expressed the IMF experts’ appreciation for the 2027 budget draft’s aim to achieve a balanced fiscal position and the introduction of measures to enhance tax compliance.
Ramirez Rigo called on the Lebanese government to proceed with legislatively raising the value-added tax (VAT) rate to 12 percent to finance public sector wage increases and to prevent any additional exceptional increases “without corresponding revenues.”
The IMF also welcomed progress in preparing the Medium-Term Fiscal Framework (MTFF), stressing that its adoption would be “essential for framing annual budgets and restoring fiscal sustainability,” while creating room for reconstruction and social protection.
The IMF’s visit to Lebanon, along with the meetings and discussions held during it, represents a crucial step in following up on structural reform issues with Lebanese officials and reviewing recent fiscal and tax decisions, paving the way for reaching a final agreement program with the Fund to help the country overcome its severe economic crisis. (End) F.Z / M.N.F
