IMF and World Bank Condition Aid for Lebanon on Normalization and Disarmament
The IMF and World Bank are tying reconstruction funds for Lebanon to the normalization of relations with Israel and Hezbollah’s disarmament. Political reforms aimed at securing $1 billion from the World Bank are needed, with the EU also imposing conditions on funding. Lebanon requires $6-7 billion for rebuilding after conflict, and Hezbollah is providing significant financial support for recovery efforts.
The International Monetary Fund (IMF) and the World Bank intend to connect financial aid for Lebanon to its normalization of relations with Israel and the disarmament of Hezbollah. Reports from Al Akhbar indicate that Kristalina Georgieva, IMF managing director, has conveyed to Wassim Mansouri, acting governor of Lebanon’s central bank, that access to international funding will depend on Lebanon’s adherence to specified reforms within a set timeframe.
It is noted that achieving these reforms aligns with growing political pressures concerning normalization with Israel and disarmament. The discussions come in the wake of comments from US Special Envoy Steve Witkoff, suggesting Lebanon and Syria may engage in normalization agreements similar to those brokered by the Trump administration with certain Arab states.
Recently, Lebanese Finance Minister Yassin Jaber announced a preliminary plan from the World Bank for a $1 billion reconstruction project, contingent on Lebanon implementing the required financial and political reforms. The World Bank is scheduled to consider this plan at a board meeting on March 25 if Lebanon complies with conditions set forth by Western powers.
The European Union has already postponed a €500 million funding disbursement, part of a 2024 agreement, citing Lebanon’s need to restructure its banking sector. To address extensive damage from recent conflicts, Lebanon estimates a necessity of $6 to $7 billion for infrastructure regeneration, with Hezbollah having allocated approximately $650 million towards housing and restoration efforts.
Despite challenges, residents in southern Lebanon have begun returning to their homes despite Israeli intimidation and ongoing ceasefire violations. Since October 7, 2023, Hezbollah has actively supported Palestinians in Gaza and retaliated against Israeli forces, achieving a ceasefire on November 27, 2024, after inflicting significant losses on Israel.
The IMF and World Bank are linking aid to Lebanon with political conditions for normalization with Israel and Hezbollah’s disarmament. Lebanon faces significant reconstruction needs following conflict, with funding contingent on reforms. While assistance from Hezbollah is substantial, international financial support hinges on compliance with stipulated conditions, reflecting ongoing geopolitical tensions in the region.
Original Source: www.presstv.ir
