Unprecedented situation: Lebanon moves closer to IMF deal with BDL modernization

Report by Bassam Abou Zeid, English adaptation by Yasmine Jaroudi

Officials at the International Monetary Fund (IMF) have characterized Lebanon's situation as unprecedented in the history of the fund.

Two years have passed since the initial agreement was signed, yet no reform steps have led to a final deal.

However, the IMF has initiated a positive gesture towards the Banque du Liban (BDL).

Officials at the IMF informed the acting BDL governor Wassim Mansouri that they will fund what is known as a Safeguard Assessment process at the BDL.

This process aims to develop and modernize the operations of the BDL by enhancing governance, accounting mechanisms, and risk management. This initiative seeks to strengthen oversight of commercial banks and allow a serious evaluation of their operations.

The Safeguard Assessment ensures that the BDL is prepared to align with the final agreement with the IMF.

Sources within BDL stated that this step is part of reaching a final agreement with the IMF.

Undertaking this process now and completing it will position the BDL to manage monetary and banking policy according to the requirements of the final agreement from the moment it is signed.

Additionally, a delegation from the IMF will visit Lebanon to monitor this step.