International Monetary Fund spokesman Gerry Rice indicated that the fund is still in discussions with Lebanon about possible financing arrangements, saying it is too early to talk about the size of any program.
While Rice refrained from providing any details on the reforms that the Fund wants from Lebanon, he stressed that the Lebanese government needs to implement comprehensive and fair reforms in many areas. Stressing that Lebanon also needs to reach a common understanding of the source and size of its financial losses.
Protests erupted in Lebanon after the collapse of the lira; This prompted the government to announce that the central bank will pump dollars into the market in order to support the lira.
The Lebanese pound has lost more than 60 percent of its value since late last year, when Lebanon plunged into a financial crisis that prompted the government to seek assistance from the International Monetary Fund.
"Discussions are ongoing, but these are complex issues that require a joint diagnosis of the sources and magnitude of losses in the financial system, as well as feasible options to address them effectively and fairly," Rice said.
Hopes for a quick bailout deal with the IMF were complicated by a dispute between the government and the Central Bank of Lebanon over the size of the losses in the financial system. In this context, the IMF expects that Lebanon will solve these problems and move forward with a series of broad reforms, as comprehensive reforms are needed in many areas, which requires the acceptance and agreement of society as a whole.
Source (Al-Arabiya.net website, Edited)
