Lebanon completes cenbank FX audit, a condition of the IMF, by June: Deputy Prime Minister

Lebanon will complete the first of a set of terms for an IMF bailout, a check of its central bank’s forex exposure, by June, the country’s deputy prime minister said during a meeting with the Lebanese state’s creditors on Wednesday.

Lebanon reached a draft agreement with the IMF in April for a $3 billion four-year bailout, the final approval of which was conditional on the implementation of eight key requirements.

An IMF program is seen as crucial for Lebanon to emerge from a devastating financial crisis that has left most people poor, because of the sweeping reforms it would entail and the international financing it could unlock.

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Saade Chami said Lebanon will need between $8 billion and $10 billion over a 10-year period on top of IMF funds.

He said he could not give a specific date for the completion of all the conditions, as many require parliamentary approval.

These include capital controls, changes to banking secrecy regulations and a banking restructuring framework.

Lebanon will hold its first polls in four years on May 15.

“If parliament approves the bills and the previous actions, we can act very quickly,” he said, suggesting that parliament could do so by mid-June.

The World Bank has described the crisis in Lebanon, the result of decades of corruption and mismanagement, as one of the worst in modern times.

Chami said governance reform, while difficult, would be central to the government’s recovery plan, which aims to reduce public debt from more than 300 percent of GDP in 2021 to 100 percent of GDP in 2026.

“To be honest, this entrenched problem cannot be solved overnight, it will take some time to change the culture and make a difference, but I think this is something that the government intends to do.” to do,” he said.

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