Washington
The IMF board has approved $77 Million as an emergency loan to Lebanon, to rebuild after the war in Southern Lebanon between Israel and Hezbollah.
The money is immediately made available to Lebanon. It is intended as a “transition loan” to a larger IMF package that is under discussion to be implemented next year.
Approval of the loan came after consultation with the Lebanese Government that also agreed to economic changes which will reduce its debt to about 130 percent of annual output, within five years.
The Lebanese government also agreed to push for the overall improvement of its social security system and energy sector.
These changes will need the approval of the Lebanese Parliament, which did not convene since its speaker locked out pro-government lawmakers in a dispute over the government plans to approve an international tribunal to try suspects in the assassination of former Prime Minister Rafik Hariri.
This loan comes in addition to about $7.6 Billion in aid and loans that were promised by international donors at a conference in January this year.
In return, the donors, would rely, in part, on IMF monitoring for assurance that Lebanon would meet its commitment for change during a five year period.
Israel Rafalovich
U.N. OBSERVER & International Report
The IMF board has approved $77 Million as an emergency loan to Lebanon, to rebuild after the war in Southern Lebanon between Israel and Hezbollah.
The money is immediately made available to Lebanon. It is intended as a “transition loan” to a larger IMF package that is under discussion to be implemented next year.
Approval of the loan came after consultation with the Lebanese Government that also agreed to economic changes which will reduce its debt to about 130 percent of annual output, within five years.
The Lebanese government also agreed to push for the overall improvement of its social security system and energy sector.
These changes will need the approval of the Lebanese Parliament, which did not convene since its speaker locked out pro-government lawmakers in a dispute over the government plans to approve an international tribunal to try suspects in the assassination of former Prime Minister Rafik Hariri.
This loan comes in addition to about $7.6 Billion in aid and loans that were promised by international donors at a conference in January this year.
In return, the donors, would rely, in part, on IMF monitoring for assurance that Lebanon would meet its commitment for change during a five year period.
Israel Rafalovich
U.N. OBSERVER & International Report