Lebanon Eyes IMF Progress Despite New Turmoil, Says Economy Minister

Lebanon Eyes IMF Progress Despite New Turmoil, Says Economy Minister

Lebanon's new government aims to make progress towards starting full negotiations for an IMF deal by the end of this year or early next, but is not expecting funds to be dispersed before elections in March, a minister said on Friday.

In an interview with Reuters, economy minister Amin Salam also said Lebanon has lost precious time in dealing with the economic meltdown because of a crisis over the probe into the Beirut port explosion which has paralyzed cabinet.

Lebanon is suffering one of the world's sharpest ever economic depressions and an IMF deal is widely seen as the only way for it to secure aid.

Salam said that figures crucial to progress on the IMF track - including Lebanon's estimate of losses in its financial system - would be sent to the Fund as early as next week.

While there was no agreement yet on how the losses should be distributed, "opinions are much closer and the picture is much clearer", he said. He declined to give figures which he said it was up to the finance ministry and central bank to provide.

But he indicated he did not expect the government to clinch a full IMF agreement before parliamentary elections set for March