Lebanon running out of time: World Bank funds hang in the balance

Report by Lara El Hachem, English adaptation by Mariella Succar

Every delay by Parliament in approving World Bank–funded loans further undermines Lebanon’s chances of recovery across multiple sectors.

Among the most critical loans at risk is the $250 million reconstruction loan, whose approval has repeatedly stalled in Parliament due to a lack of quorum. Another pending loan, related to water infrastructure, remains stuck in the Cabinet.

This message was reiterated to Lebanon’s Finance Minister Yassine Jaber during the IMF fall meetings and again on Thursday by a senior World Bank delegation that met with him for about an hour at the Finance Ministry.

The volume of World Bank–funded projects in Lebanon is substantial, including the electricity and agriculture loans that were approved by Parliament under the current government. 

The Bank’s main concern now, according to officials, is ensuring proper implementation and oversight of how the funds are used.

The talks also addressed the stalled agreement with the International Monetary Fund. 

The World Bank representatives, including executive directors representing 11 countries on the Bank’s Board, emphasized that the cornerstone of any agreement remains the approval of the financial gap law. 

Without restoring confidence in the banking sector, they noted, Lebanon will be unable to attract investors, lend to the private sector, or curb the cash-based economy as required under reform conditions.

The discussions concluded that no international institution will agree to assist Lebanon without a formal IMF agreement — which would also pave the way for direct World Bank support to the state budget through grants rather than sector-specific loans.

The Finance Minister, aware of the sensitivity of the situation, outlined the country’s challenges to the visiting delegation. But officials agreed that the primary condition for rebuilding trust remains stability — both political and security — which has yet to be achieved months after negotiations resumed with the IMF and World Bank.