The IMF and World Bank are considering tying Lebanon’s aid to normalization with Israel and Hezbollah’s disarmament. A $1 billion reconstruction plan is on the table, pending political and financial reforms. The EU is also conditioning aid on banking system restructuring, reflecting wider attempts to stabilize Lebanon amid ongoing conflict.
The International Monetary Fund (IMF) and the World Bank have reportedly proposed linking aid to Lebanon’s reconstruction to the country’s normalization of relations with Israel and the disarmament of Hezbollah. Sources from the Beirut-based newspaper Al Akhbar indicate that IMF chief Kristalina Georgieva communicated these conditions to Wassim Mansouri, the acting governor of Lebanon’s central bank, emphasizing that international funding will require specific actions within a defined timeframe.
The report followed comments from US Special Envoy to the Middle East, Steve Witkoff, who suggested that Lebanon and Syria could potentially join normalization agreements previously negotiated by former President Donald Trump with various Arab nations. Amidst these developments, Lebanese Finance Minister Yassin Jaber announced that the World Bank has drafted a preliminary plan for a $1 billion reconstruction effort following the recent devastation caused by an Israeli military campaign.
Furthermore, the report highlighted that the World Bank plans to consider funding during its Executive Board meeting scheduled for March 25, contingent upon the implementation of financial and political reforms demanded by Western powers. Similarly, the European Union has made its funding conditional upon necessary reforms within Lebanon’s banking system, which has delayed a €500 million aid package as part of a deal aimed at addressing refugee flows into Europe.
Current estimates indicate that Lebanon requires between $6 billion and $7 billion for infrastructure rebuilding and debris removal resulting from the conflict. Hezbollah has been a significant contributor to recovery efforts, reportedly allocating approximately $650 million to housing and reconstruction in southern Beirut and surrounding areas. Residents have begun returning to their homes despite ongoing threats and violations of the ceasefire by Israel.
In response to the escalating conflict in Gaza, Hezbollah has intensified its support for the Palestinian cause, engaging in retaliatory attacks since the outbreak of hostilities on October 7, 2023. A ceasefire was reached on November 27, 2024, after Israel suffered severe losses without accomplishing its military objectives, which has been a point of contention in the region.
In summary, the IMF and World Bank’s potential funding for Lebanon is intricately linked to the nation’s political alignment with Israel and the disarmament of Hezbollah. The approach taken by these financial institutions reflects broader geopolitical dynamics as Lebanon seeks substantial aid for post-conflict reconstruction. As pressures from international entities mount, Lebanon faces critical reforms to access the necessary financial support for recovery.
Original Source: www.presstv.ir
