LEBANON - International Monetary Fund (IMF) officials held “good” discussions with Lebanese authorities this week, with talks expected to continue in the coming weeks and an IMF team expected to visit Lebanon in November, a senior Fund official said on Thursday.
Athanasios Arvanitis, deputy director of the IMF’s Middle East and Central Asia Department, said discussions focused on Lebanon’s banking sector and restoring public confidence in the financial system. The sustainability of Lebanon’s public debt was another key issue, Reuters reported.
Banking Sector Reform
Lebanon’s banking sector restructuring remains a central part of discussions with the IMF following the country’s financial crisis, which began in 2019 and severely restricted depositors’ access to their savings.
During a February 10–13, 2026, visit to Beirut, IMF staff discussed proposed legislation on financial stability and depositor recovery, as well as amendments to the Bank Resolution Law.
The Fund called for a framework that would support a viable banking system and ensure that shareholders and junior creditors absorb losses before depositors.
Following a subsequent visit from September 15–18, the IMF welcomed amendments to the Bank Resolution Law, describing them as a step towards establishing an effective framework for resolving troubled banks.
However, the Fund said further work was needed to align the proposed Financial Stabilization and Deposits Recovery Law with international standards and ensure that the restructuring process supports financial stability and public debt sustainability.
Public Debt and Next Steps
Public debt sustainability remains another priority as Lebanon works to address the consequences of its financial crisis.
During its September visit, the IMF also reviewed Lebanon’s draft 2027 budget and the development of a medium-term fiscal framework. The Fund said the framework would be important for restoring fiscal sustainability while allowing for essential reconstruction and social spending.
Lebanon is seeking a new agreement with the IMF after an initial staff-level agreement reached in April 2022 failed to progress into a full programme amid delays in implementing reforms.
Finance Minister Yassine Jaber said in September that legislation addressing financial-sector losses remained necessary for progress towards a full IMF programme.
The planned November visit is expected to provide another opportunity for discussions on the outstanding reforms. No new agreement was announced in Arvanitis’ remarks.
