International Monetary Fund Warns of Lebanon's 'Deep Crisis'

The International Monetary Fund (IMF) announced on Thursday that Lebanon must take immediate steps towards comprehensive economic reforms to prevent 'irreparable consequences' for its economy. Julie Kozak, an IMF spokesperson, told reporters that the Fund's experts consulted with Lebanese officials on June 1 and concluded that urgent reforms are necessary to avert a 'severe and deep crisis' facing the economy. According to Reuters, Kozak stated, 'Lebanon needs immediate action to implement a comprehensive economic reform program to stop the crisis from worsening and to allow the Lebanese economy to recover.' She expressed concern about the 'irreparable consequences for the economy, especially for Lebanon's poor citizens and the middle class.' Kozak mentioned that the IMF remains committed and willing to support Lebanon, but the country also needs strong financial backing from the international community to meet its financial needs in the coming years. She emphasized that it is crucial for the Lebanese government to ensure broad political support for implementing the economic reforms agreed upon with IMF staff in April 2020. Kozak noted that Jihad Azour, an IMF official and former Lebanese finance minister, is currently on temporary leave to avoid any conflict of interest after being nominated by opposition parties and independent Christian factions to challenge Suleiman Frangieh, the Hezbollah-backed presidential candidate. Lebanon has been without a president since Michel Aoun's term ended in late October, exacerbating the economic crisis in the country. The Iran-backed Hezbollah group, Lebanon's main armed political force, and its Shiite ally, Amal, have supported Frangieh, 56, a scion of an old Christian political dynasty and an ally of Syrian President Bashar al-Assad. According to the report, opposition representatives stated that consensus on Azour could help him secure the 65 votes needed in the 128-member parliament to assume the presidency, which is allocated to a Maronite Christian in the country's complex sectarian power-sharing system. A senior financial manager has been nominated for the Lebanese presidency by parliament. The Lebanese military court has charged five members of Hezbollah and Amal with the murder of an Irish peacekeeper. The U.S. has seized 13 internet domains used by Hezbollah in Lebanon.