IMF: Lebanese Economy Cannot Be Saved Unless A New Govt. Is Formed

IMF: Lebanese Economy Cannot Be Saved Unless A New Govt. Is Formed

"The change of direction cannot be done on a piecemeal basis. It requires a comprehensive approach,“ said director of the IMF's Middle East and Central Asia Department, Jihad Azour, on Sunday.

He stressed that the long-awaited reforms should focus on the financial sector, public finance, governance, corruption, and loss-making utilities that have contributed to a surge in debt.

The crisis in the small Mediterranean country, which has been without a government for months, commenced before the COVID-19 pandemic and accelerated after a massive stockpile of ammonium nitrate, stored unsafely for years, exploded in Beirut's port in August last year, devastating the port and killing more than 200 people.

Prime Minister-designate Saad Hariri has so far failed to form a government. The previous government resigned after the colossal explosion last year.

Lebanon is experiencing its worst economic crisis in decades, compounded by the COVID-19 pandemic, with prices skyrocketing and more than half of the population living below the poverty line.

Lebanon's economy shrank by 25 percent last year, the IMF said in a report week.

"In (the) absence of a new government that can lead this transformation, it's very difficult to expect that the situation will in itself improve,“ Azour added.

He joined other officials calling for an