A new clash is expected to erupt between Hezbollah and Lebanese political forces supporting the request for financial assistance from the International Monetary Fund (IMF) to save the economic situation in the country.
Hezbollah has publicly declared its refusal to “yield to the IMF to manage the crisis.”
In this regard, member of Hezbollah’s central council, Nabil Qaouk, said that foreign aid should not be an opportunity to impose tutelage over Lebanon. He stressed the rejection of “putting our economy, society and the future of our people at the mercy of external parties."
“At the same time, we are keen on reforms that encourage external parties to provide aid,” Qaouk stated.
However, politicians and economists say Lebanon has no choice but to resort to the Fund.
In remarks to Asharq Al-Awsat, Future Movement MP Dima Jamali said: “Requesting the assistance of the IMF became necessary and urgent.”
“The refusal to resort to the Fund cannot be justified on the pretext that it will impose difficult measures and taxes, because addressing an economic crisis in a particular country is carried out according to the specific situation of that country, and the solutions of the IMF are not necessarily the same everywhere,” she added.
For his part, Rami al-Rayes, advisor to the head of the Progressive Socialist Party, Walid Jumblatt, pointed out that all economic, financial and monetary exits were now closed.
“We have no choice but to resort to the IMF after the systematic destruction of Lebanon’s foreign policy, which led to the deterioration of relations with donor countries, especially the Gulf States,” he told Asharq Al-Awsat.
Rayes revealed information that none of the decisions of the CEDRE Conference would be implemented unless they were coupled with the IMF’s monitoring of the reform process, as the international community has lost confidence in the Lebanese management.
Financial and Economic Expert Walid Abu Suleiman pointed out that even if the Lebanese government succeeded in curbing the deficit in the State budget, the country would be forced - in light of the scarcity of foreign currency reserves - to provide hard currencies from the IMF.
“The IMF was originally created to help countries with balance of payments problems,” he said, pointing to the possibility of obtaining from the Fund $8.6 billion for a period of 3 years.
Writer and political analyst specializing in Hezbollah affairs, Qassem Kassir, ruled out that the party’s position was final regarding the request for assistance from the IMF.
“The party is emphasizing two basic points: The first is that no help from the Fund be associated with the imposition of huge taxes, and the second is that no political conditions be linked with the assistance,” he explained.
According to the Carnegie Middle East Center, Hezbollah’s refusal to resort to the IMF “may ultimately mean the collapse of Hassan Diab’s government, and Lebanon itself.”
“Resorting to the IMF is no longer an option, but rather a necessity,” the center said, noting that without such decision, “Lebanon will not be able to obtain funds to support its economy, or receive the hard currency necessary to import vital necessities, such as food and fuel.”
