Finance Minister Yassine Jaber announced progress in negotiations with the International Monetary Fund (IMF) over Lebanon’s financial gap law, banking sector restructuring and the recovery of depositors’ funds, expressing hope that an agreement on an IMF-supported program could be reached during the first quarter of next year.
Jaber concluded the latest round of talks at the head of Lebanon’s negotiating delegation, alongside Economy and Trade Minister Amer Bisat, Banque du Liban Governor Karim Souaid, Finance Director General Georges Maarraoui, representatives of the Presidency and Prime Minister’s Office, and financial experts.
Speaking after the meetings, Jaber said discussions had helped narrow differences between the parties and were characterized by frank exchanges and mutual understanding.
He quoted the IMF mission chief as describing Lebanon’s banking crisis as an unprecedented case of financial distress that had remained unresolved for seven years.
Jaber announced an agreement to establish a smaller committee to continue negotiations and finalize outstanding proposals before the end of 2026, with the aim of submitting a unified draft financial gap law to Parliament.
He expressed hope that the legislation would be ready for implementation before March 2027 and that an agreement on an IMF program could be concluded and signed during the first quarter of next year, or by its end at the latest.
The minister said the IMF was expected to issue a statement outlining the outcome of the discussions, possibly later in the day following a technical delay involving electronic correspondence.
Addressing the recovery of bank deposits, Jaber outlined two central objectives: restoring a functioning banking sector capable of supporting economic development and rebuilding confidence, and initiating the repayment of depositors’ funds.
He said an overwhelming majority of depositors, potentially around 90%, could recover their funds in cash or fresh US dollars during the initial phase, while remaining deposits would be addressed through bonds issued by Banque du Liban and repaid in subsequent stages.
Jaber emphasized that the proposed legislation must be financially viable and supported by sufficient resources to meet its obligations.
On the distribution of losses, he reaffirmed the proposed order of responsibility: the state first, followed by Banque du Liban, commercial banks and, finally, depositors.
He maintained that most depositors would recover their funds in full, although repayment schedules and mechanisms would vary, acknowledging that simultaneous repayment of all deposits was not feasible.
Regarding losses incurred by depositors who previously withdrew funds at exchange rates below the actual dollar value, Jaber acknowledged the difficulty of compensating all past losses, saying any remedy would depend on the financial capacities of the state and central bank.
He also thanked the Economy Minister, the central bank governor, his deputies and their teams for their cooperation, noting that Banque du Liban was providing the financial data and calculations underpinning the negotiations, particularly concerning available resources and repayment capacity.
For his part, Economy and Trade Minister Amer Bisat described the discussions as highly positive, citing progress and agreement in principle on key issues.
He said negotiations had now moved toward resolving outstanding technical details, with the smaller committee tasked with completing the necessary work and providing the IMF with additional information.
Bisat explained that the committee would comprise three parties: the Lebanese government, represented by its experts and relevant ministers when necessary; Banque du Liban, represented by its governor and technical team; and the IMF.
He expressed hope that the remaining details would be finalized before year-end, paving the way for the submission of a consolidated legislative proposal to Parliament.
Jaber concluded the latest round of talks at the head of Lebanon’s negotiating delegation, alongside Economy and Trade Minister Amer Bisat, Banque du Liban Governor Karim Souaid, Finance Director General Georges Maarraoui, representatives of the Presidency and Prime Minister’s Office, and financial experts.
Speaking after the meetings, Jaber said discussions had helped narrow differences between the parties and were characterized by frank exchanges and mutual understanding.
He quoted the IMF mission chief as describing Lebanon’s banking crisis as an unprecedented case of financial distress that had remained unresolved for seven years.
Jaber announced an agreement to establish a smaller committee to continue negotiations and finalize outstanding proposals before the end of 2026, with the aim of submitting a unified draft financial gap law to Parliament.
He expressed hope that the legislation would be ready for implementation before March 2027 and that an agreement on an IMF program could be concluded and signed during the first quarter of next year, or by its end at the latest.
The minister said the IMF was expected to issue a statement outlining the outcome of the discussions, possibly later in the day following a technical delay involving electronic correspondence.
Addressing the recovery of bank deposits, Jaber outlined two central objectives: restoring a functioning banking sector capable of supporting economic development and rebuilding confidence, and initiating the repayment of depositors’ funds.
He said an overwhelming majority of depositors, potentially around 90%, could recover their funds in cash or fresh US dollars during the initial phase, while remaining deposits would be addressed through bonds issued by Banque du Liban and repaid in subsequent stages.
Jaber emphasized that the proposed legislation must be financially viable and supported by sufficient resources to meet its obligations.
On the distribution of losses, he reaffirmed the proposed order of responsibility: the state first, followed by Banque du Liban, commercial banks and, finally, depositors.
He maintained that most depositors would recover their funds in full, although repayment schedules and mechanisms would vary, acknowledging that simultaneous repayment of all deposits was not feasible.
Regarding losses incurred by depositors who previously withdrew funds at exchange rates below the actual dollar value, Jaber acknowledged the difficulty of compensating all past losses, saying any remedy would depend on the financial capacities of the state and central bank.
He also thanked the Economy Minister, the central bank governor, his deputies and their teams for their cooperation, noting that Banque du Liban was providing the financial data and calculations underpinning the negotiations, particularly concerning available resources and repayment capacity.
For his part, Economy and Trade Minister Amer Bisat described the discussions as highly positive, citing progress and agreement in principle on key issues.
He said negotiations had now moved toward resolving outstanding technical details, with the smaller committee tasked with completing the necessary work and providing the IMF with additional information.
Bisat explained that the committee would comprise three parties: the Lebanese government, represented by its experts and relevant ministers when necessary; Banque du Liban, represented by its governor and technical team; and the IMF.
He expressed hope that the remaining details would be finalized before year-end, paving the way for the submission of a consolidated legislative proposal to Parliament.
