IMF Urges Lebanon to Revamp its Subsidy System

IMF Urges Lebanon to Revamp its Subsidy System

Lebanon should revamp its subsidy system to reach those most in need and make better use of its rapidly dwindling foreign currency reserves, TDS cited the IMF.

Crushed by a mountain of debt, Lebanon is facing its worst economic crisis since its 1975-1990 civil war. As prices soar, many Lebanese have been plunged into poverty and are increasingly reliant on subsidies, but the state is fast runnning out of cash.

"We encourage Lebanon to moving into a more targeted subsidy system that will allow them to reach those who are the most affected and also allow them to have a better utilisation of their foreign currencies," Jihad Azour, Director of the Middle East and Central Asia Department at the IMF told Reuters.

Lebanon has spent $4 billion so far in 2020 on subsidising