In a joint statement, ambassadors say solutions to Lebanon's economic crisis come from within

The Ambassadors of Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, and the European Union in Beirut issued a joint statement marking one year since the Staff-Level Agreement (SLA) with the International Monetary Fund (IMF). 

The statement said that the Staff-Level Agreement promised assistance of over $3 billion to support the country's economic recovery, saying that the government pledged to implement quickly a comprehensive package of structural reforms to reach a formal agreement with the IMF. 

"It is disappointing that Lebanon's political actors have made only limited progress in implementing these prior actions," the joint statement said, adding that the SLA was finalized on April 7, 2022.

However, "an absence of political will has hindered progress. While some conditions have been met, the bank secrecy law proved insufficient, no progress has been made with respect to allocating financial sector losses, and authorities must work to audit Lebanon's major banks and unify Lebanon's exchange rates." 

The joint statement also highlighted that Lebanon faces one of the worst economic crises and that the inflation reached 186 percent, while the Central Bank's external reserves continue shrinking. 

The ambassadors urged all Lebanese leaders to rediscover the sense of responsibility they recognized last April, adding that with or without an IMF program, structural reforms are necessary to promote Lebanon's recovery. 

They also called for a renewed sense of urgency to elect a president "who can unite the Lebanese people and will work with the international community in the national interest." 

The joint statement stressed that the answers to Lebanon's economic crisis only come from within, and that they start with meaningful reforms.  

"Now is the time for the Lebanese authorities to seize the opportunity presented by an agreement with the IMF. Otherwise, the economy will deteriorate further, with ever more severe consequences for the Lebanese people," concluded the statement.