IMF holds new talks with Lebanon on bank restructuring strategy

Show caption: Lebanon's central bank headquarters in Beirut. The country d…

Finance minister Yassine Jaber hopes for preliminary agreement with fund on economic reform programme

The International Monetary Fund said its staff held a new round of talks with Lebanon this week focusing on the banking sector's restructuring strategy, as Beirut looks to secure a new agreement with the multilateral lender.

Lebanon's banking resolution law is seen as a critical component in securing an economic reform programme with the IMF. A staff-level agreement was initially struck in 2022 after the country's economy collapsed in 2019, although the government had been slow to implement the IMF's recommended changes.

“This is part of our close discussions with the Lebanese authorities to underpin a comprehensive reform programme to restore financial stability in the country and to support an economic recovery in the country,” IMF communications director Julie Kozack said.

Yassine Jaber, Lebanon's Finance Minister, said talks were being held with a view to reaching a new agreement with the fund. He said a law distributing losses between the state, the country's central bank, commercial banks and depositors remains a sticking point in negotiations.

Ms Kozack did not say whether the IMF hopes to reach a preliminary agreement this week.

“The mission is focused on the banking sector restructuring strategy and the mission will communicate at the end of the mission with whatever relevant updates they have,” she said.

The Lebanese parliament passed a banking resolution law in August, a development welcomed by the IMF and characterised as a major step forwards in revamping the banking sector.

Last month, Lebanese President Joseph Aoun appealed to the Constitutional Council over an amendment involving the central bank's independence and power. The IMF said it would assess any changes to the legislation to ensure they are consistent with international standards.

The IMF has said Lebanon must implement a 2027 budget, a medium-term fiscal framework and other reforms to secure any agreement.

Lebanon defaulted on its debt for the first time in the country's history in March 2020, resulting in hyperinflation, high unemployment and a soaring poverty rate.

The banking crisis left depositors unable to access their savings and the Lebanese pound fell more than 90 per cent. Lebanese authorities estimated total financial losses from the 2019 economic collapse to be around $70 billion, although that figure is now thought to be higher.

A World Bank report in August estimated Lebanon's economy would contract by 6.4 per cent this year due to reversing the economy recovery of the previous year, when growth accelerated at a rate of 4.2 per cent.

Mr Jaber has said Lebanon must urgently bring an end to its economic crisis and restore a functioning banking sector.

Updated:

November 12, 2026, 4:47 PM