Lebanon economic crisis worsened by vested interests, IMF says

Lebanon economic crisis worsened by vested interests, IMF says

BEIRUT - Lebanon's financial crisis has been aggravated by vested interests resisting crucial reforms, the International Monetary Fund (IMF) said on Thursday, warning that no action could lead the country "down an unpredictable road". The nearly four-year economic meltdown has cost the local currency roughly 98% of its value, seen GDP contract by 40%, pushed inflation into triple-digits and drained two-thirds of the central bank's foreign currency reserves, the IMF said. The figures came as part of its Article IV report, a comprehensive assessment of Lebanon's finances. The IMF said the crisis had been compounded "by a failure to take much needed policy action, hampered by a lasting political crisis and resistance from vested interests to reforms." Lebanon signed an agreement with the IMF in April 2022 but has not met the conditions to secure a full $3 billion financing programme, seen as crucial to a recovery from one of the worst economic collapses in modern history. The IMF said the steps Lebanon had tried so far, including the 2022 budget and a banking secrecy law fell short of the advice given by IMF staff or the expectations discussed. Mission chief Ernesto Rigo told reporters that Lebanon's leaders may face