The Lebanese government formally requested the assistance of the International Monetary Fund (IMF) on Friday, one day after the announcement of the long-awaited economic plan.
Prime Minister Hassan Diab and Minister of Finance Ghazi Wazni signed the request for assistance, which was cautiously welcomed by the different political forces.
Diab described the move as “a pivotal moment in the history of Lebanon.”
“We took the first step towards a real project to save Lebanon from the deep financial crisis, which is difficult to overcome without effective assistance,” he said.
He hoped that the approval of the plan and the signing of the request for assistance would be “a turning point in the downward path of Lebanon’s financial and economic realities.”
President Michel Aoun invited the heads of parliamentary blocs to a meeting in Baabda Palace on Wednesday to present the government’s reform program.
Meanwhile, the Association of Banks in Lebanon (ABL) said it could in “no way” endorse a plan it was not consulted on despite being “a key part of any solution,” Reuters reported.
The association called on members of parliament to reject it in part for infringing on private property rights, according to Reuters.
The ABL said in a statement that the plan failed to address inflationary pressures and might lead to hyperinflation.
“As laid out in the plan, the domestic restructuring will further destroy confidence in Lebanon both domestically and internationally,” ABL added.
