The International Monetary Fund (IMF) has concluded a mission to Lebanon, led by Ernesto Ramirez Rigo. The visit, which took place from May 28 to June 5, 2025, was at the request of Lebanese authorities to discuss potential support for a reform program.
Mr. Ramirez Rigo stated that "the IMF mission held productive discussions with the Lebanese authorities on a comprehensive economic reform program aimed at restoring macroeconomic sustainability and supporting financing for reconstruction." Key areas of discussion included banking sector viability, fiscal and debt sustainability, monetary policy frameworks, governance transparency, anti-money laundering measures, and state-owned enterprise reforms.
A significant focus was placed on the rehabilitation of Lebanon's banking system. Mr. Ramirez Rigo noted that this is essential for rebuilding confidence in banks and restarting private-sector credit. Recent progress includes amendments to the Bank Secrecy Law and submission of a new bank resolution law to Parliament. Approval of this legislation by Parliament is necessary to support orderly banking intermediation recovery while safeguarding public interests.
The mission also addressed Lebanon's 2026 Budget and the creation of a medium-term fiscal framework. Mr. Ramirez Rigo emphasized that any additional expenditures must be matched by revenue efforts due to limited fiscal space. Strengthening tax enforcement and compliance is crucial alongside an ambitious strategy for revenue mobilization and expenditure rationalization.
Lebanon’s substantial reconstruction needs require significant external support on concessional terms. This support will aid in managing the burden of hosting refugees as well as restructuring Eurobonds to restore debt sustainability.
Discussions on formulating a comprehensive reform program are expected to continue from IMF headquarters with follow-up missions planned. The IMF reaffirmed its commitment to supporting Lebanon during this challenging period within its mandate and policies.
"The mission thanks the Lebanese authorities and all stakeholders for their cooperation and constructive engagement," Mr. Ramirez Rigo concluded.