Lebanon must push through a number of key economic and banking sector reforms to secure a new International Monetary Fund program, the Fund said on Thursday. "It will require continued progress on key reforms, including the entry into force of the bank resolution law, and appropriate financial gap laws consistent with international standards," IMF spokesperson Julie Kozack told reporters during a press conference. She added a 2027 budget and medium-term fiscal framework that were "consistent with debt sustainability for the country" were also required. Lebanon first signed a preliminary agreement with the IMF in April 2022, more than two years after its financial system imploded following decades of profligate spending and corruption in the ruling elite. It recently passed a new banking restructuring law which was welcomed by the IMF, but this week Lebanon's President Joseph Aoun quietly referred that law to the country’s constitutional council, triggering a review. The move has sparked concerns among reformists in Lebanon that the country is backtracking on the key piece of legislation and potentially putting its IMF support hopes at risk.
