The International Monetary Fund (IMF) has revealed an opportunity for the Lebanese government to implement fundamental reforms which could restore the balance to the Lebanese economy, including the double and high deficits, large public debt and low growth.
The Lebanese government has already approved a crucial plan to reform the electricity sector and is now working on a public budget to reduce the fiscal deficit, a first step that is highly welcomed on a long path towards sustainability and growth, followed by other major steps to strengthen the fiscal discipline and structural reforms, improving the business environment and governance in Lebanon.
IMF called upon the Government of Lebanon to strengthen the Lebanese economy, to develop a reliable medium-term fiscal plan aimed at achieving a large and sustainable initial fiscal surplus that would gradually reduce the public debt to GDP ratio. It also called on it for structural reforms to boost the external growth and competitiveness, starting from improving the governance, implementing the reform plan to the electricity sector and the recommendations of Lebanon's economic vision, as well as taking measures to increase the resilience of the monetary sector by strengthening the Banque du Liban's balance sheet and to continue building the banks' preventive capital.
Source (IMF website, Edited)
