Caretaker Minister of Economy Amin Salam emphasized the need to draw lessons from the recent visit of the International Monetary Fund delegation, which presented detailed information based on a comprehensive explanation of the consequences of delaying the necessary reforms in Lebanon.
It is worth noting that a delegation from the International Monetary Fund visited Lebanon last month and highlighted the crisis in the country. The head of the delegation, Ernesto Ramirez Rigo, warned that failing to implement urgent reforms would lead to an endless crisis, cautioning that Lebanon is going through an extremely critical moment amid a rapid economic collapse.
Salam stated in an interview with "al-Anbaa" that we must pay attention to every word uttered by the head of the delegation, regardless of whether there is a team with the Fund or not. As stated by the delegation's head, the expected scenarios are further collapse in the monetary, economic, social, and security fields.
He revealed that the delegation focused on the financial and monetary aspects of the crisis, particularly the deterioration of the exchange rate, and that we are heading towards an exchange rate for the dollar with no ceiling and a further increase in inflation rates, along with a terrifying unemployment rate and social and security collapse. This is the overall scenario presented by the delegation of the Fund.
Salam clarified that the Fund has mapped out Lebanon's collapse for the next four years until 2027 if Lebanon fails to implement all the required reforms and a comprehensive economic, financial, and social development plan.
Otherwise, Lebanon will enter a dark tunnel that may be difficult to control or exit from, which may be worse than the Venezuelan scenario.
Answering whether the agreement with the IMF is at risk of cancellation, Salam confirmed that there is a positive issue emphasized by the Managing Director of the International Monetary Fund, Kristalina Georgieva, during meetings in Washington.
The head of the delegation in Beirut also reiterated the same position that the IMF would not abandon Lebanon, and it is difficult to cancel the preliminary agreement despite almost a year passing since its inception.
However, the IMF's patience has reached its final stages and may extend the deadline. Still, afterward, it may prioritize other countries like Europe and Africa.
Salam also emphasized that we are facing a crisis and rapid deterioration, and we no longer have sufficient time given the worsening situation, whether socially, economically, health-wise, educationally, or security-wise.
Lebanon's ability to endure is now only a matter of months if we still need to hasten the approval of the current reform laws in the parliament. He pointed out that the message from the IMF delegation was clear and precise in this regard.
Salam affirmed that we are managing the crisis with excellence and addressing the consequences of the delay in making decisive decisions that were supposed to contain the deterioration and initiate reforms toward recovery and rebuilding trust in the country.
However, there is still something we can do to prevent the collapse. Solutions are still possible, and the international community stands by us and deals with us.
Otherwise, Lebanon is heading towards more tragic situations that would be difficult to escape. At that point, we will enter a tunnel that would be hard to get out of.
In response to a question, Salam considered that the International Monetary Fund is not the last resort. Still, its role is fundamental, and it is one of the largest financial institutions in the world.
Therefore, the depth of the crisis and the existing political deficit have put us in a position where we need an entity like the IMF to shake the stick for us and provide us with a practical framework, whether on the financial, monetary, or economic levels.
"Because the existing Lebanese system has demonstrated complete incapacity to regulate the affairs of the country to get out of the crisis and is still busy distributing losses and shifting responsibility from one side to another, while the nation and its people are collapsing and the chances of survival are diminishing," he added.
Salam saw that there is no alternative solution for the current government other than the International Monetary Fund (IMF). Still, the entry point to the solution is to elect a new president and form a new effective government. This would put Lebanon on the map for rebuilding trust. He pointed out that the $3 billion from the IMF is not enough to revive the country and is considered a "stamp" or "seal" of confidence.
Salam pointed out that the government has submitted draft laws to the parliament, which are fundamental laws and a gateway to addressing the situation, such as the "Capital Control" law and the restructuring of banks and bank secrecy laws that are essential for any recovery plan to succeed.
He said the banking sector needs a law protecting it and depositors. It cannot be restructured without a "Capital Control" law and a clear framework.
"The equation is clear; there can be no recovery without reforms, no banks without laws, and no economy or growth without banks and restoring trust," Salam stressed.
He noted that decisive and bold national decisions are required to save the country. There is no place for sin or patchwork solutions.
"We have reached a point of no return, and the only way forward is through reform, a state of institutions, and the rule of law," he concluded by saying.