IMF to accelerate talks with Iraq and Lebanon — The National
In Bangkok, Thailand, the International Monetary Fund plans to accelerate talks with Iraq and Lebanon on possible financial support and economic policy support to stabilize their economies. IMF Managing Director Kristalina Georgieva said this during the annual meetings of the IMF and the World Bank, The National reports.
Support for Iraq
According to Georgieva, the IMF will firmly support Iraq by combining financial assistance with economic policy support. She also mentioned the support the fund provides to Egypt and Jordan.
Iraq has faced one of its most serious economic and security periods since the start of the war with Iran in February. At the same time, Baghdad is seeking to strengthen its position. Last month, at the UN General Assembly in New York, Prime Minister Ali al-Zaidi called for investment in the country, presenting economic and anti-corruption plans.
Talks with Lebanon
Georgieva reported intensive talks with the Lebanese authorities and significant progress in preparing an IMF program. According to her, the sides still need to complete part of the work, but she expressed confidence that a result would be achieved.
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Lebanon is heavily dependent on imports, making it particularly vulnerable to disruptions in shipping and energy supplies caused by the regional war. The country also continues to overcome the consequences of the financial crisis that began in 2019. The World Bank forecasts that Lebanon's economy will contract by 6.4% in 2026.
The IMF said this month that it would assess possible changes to Lebanon's bank resolution law for compliance with international standards. Lebanon's central bank governor, Karim Suaid, had previously expressed expectations of a breakthrough in negotiations with the fund on this law by the end of 2026.
Georgieva also noted reforms by the governments of the Gulf countries which, she said, helped them mitigate the effects of regional shocks thanks to accumulated financial reserves.
